Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold inched up a dime to hold above $1,480 as lingering concerns over trade offset a rise in equities and the dollar behind strong US factory data.

Industrial production surged 1.1% in November, according to Federal Reserve data, suggesting the beleaguered sector may be stabilizing. Led by a 12% jump in car, trucks and auto parts, it was the biggest rise in more than two years. But overall output remains down nearly 1% for the year.

All three main US indexes rose around 0.1% to new record closes as the upbeat data and hopes for a Sino-US trade deal stoked risk appetite.

The dollar rose around 0.2% against major rivals, with the UK pound falling sharply for a second session after Brexit hardliners set a firm deadline of December 2020 to leave the EU. A rising dollar typically weighs on gold and other commodities priced in it for global trade by making them more costly overseas.

But gold shook off the rises in risk appetite and the dollar as traders remain unconvinced about the prospects of the so-called "phase one" trade agreement to improve global growth. While US officials have trumpeted the pact as a done deal, Chinese officials have seemed less certain, saying it does not mean the trade war is over. Few details have been released.

The other precious metals were lower, with silver sliding 0,2% while platinum and palladium fell 0.2% and 2.3%, respectfully.

At the Comex close: February gold added 10 cents, to $1,480.60; March silver dropped 4 cents to $17.07; January platinum dipped $1.50 to $929.80; and March palladium fell $45 to $1,918.60 an ounce.