Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold added 0.2% to close above $1,225, the highest level in nearly two weeks, as soft data and trade worries punished stocks and the dollar, boosting demand for safe havens. It was the metal's fourth straight winning session.

Home-builder confidence plummeted in November by the most in four years as rising mortgage rates, materials costs, and labor expenses cast a pall on the crucial sector. Builder sentiment is considered an early indicator of health of the construction industry, itself a weathervane for the economy.

The Dow fell nearly 400 points, or 1.5%, and the tech-heavy Nasdaq plunged 3% as concerns about new tariffs with China weighed on industries beholden to US-China trade flows. A huge number of Chinese imports, many of which are needed by US tech firms, face an increase in tariffs to 25% from the current 10% unless a deal is reached.

The dollar slid 0.3% against major rivals as traders heard more dovish signals from the Fed. John Williams of the New York Fed said the central bank wants to "keep the expansion going" for as long as possible, suggesting hesitancy to raise rates too much more. Higher rates have supported the dollar's rally this year, pressuring gold and other commodities priced in it for global trade.

Williams' comments come after similarly dovish words from other voting members. Chairman Jerome Powell said last week the economy is facing headwinds, especially from the housing market. And both Vice Chair Richard Clarida and Earl Bostic of the Atlanta Fed said the central bank is already close to neutral rates, which may mean few more hikes on the horizon.

The other precious metals were mostly higher, with silver and platinum picking up 0.2% and 1.3%, respectively, while palladium fell 1.2%.

At the Comex close: December gold for delivery gained $2.30 to $1,225.30; December silver picked up 2 cents to $14.40; January platinum climbed $11 to $857.60; and December palladium slid $13.30 to $1,141.30 an ounce