Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.5% to close above $1,231 as the dollar rallied on political turmoil and soft economic data in the eurozone, cutting demand for alternative stores of value.

Weaker-than-expected PMI reports in the eurozone and tensions between Italy and the EU over its budget weighed on the euro, which fell 0.7%. Meanwhile, the British pound also lost 0.7% on growing concerns that PM Theresa May's inability to strike a Brexit deal could result in a vote of no confidence against her government.

The dollar rose 0.5% to a two-month high against a basket of major rivals, boosted by the European problems. A rising dollar pressures gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The markets largely ignored President Trump's deepening criticism of the Federal Reserve he told the Wall Street Journal that Fed Chair Jerome Powell "looks happy raising interest rates," clearly signaling his preference for lower rates.

US economic data also had little effect on trading. New home sales plunged to a two-year low on higher prices and lower availability. And the Fed's Beige Book reported "modest to moderate" growth in wages and prices throughout its 12 districts.

The other precious metals were also lower, with silver shedding 0.8% while platinum and palladium lost 0.5% and 0.9%, respectively.

At the Comex close: December gold slipped $5.70 to $1,231.10; December silver dropped 12 cents to $14.68; January platinum slid $3.90 to $831.50; and December palladium lost $10.50 to $1112.30 an ounce. 0.9%.