Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1% to close under $1,188 as upbeat US economic data and yesterday's rate hike from the Fed boosted the dollar, diminishing demand for alternative stores of value.

Orders for durable goods rose 4.5% in August, the most in six months, on rising demand for commercial aircraft and autos. The rise suggests that rising concerns about trade conflicts are not showing up in big-ticket manufacturing goods.

New jobless claims came in lower than expected in late September, signaling ongoing strength in the labor market. Optimism about employment is a main reason consumer confidence, as reported yesterday by the Conference Board, surged to an 18-year high this month.

The dollar gained 0.7%, its biggest one-day rise in more than a month, after yesterday's quarter-point rate hike drew foreign exchange investment seeking higher yield. Turmoil over Italy's budget weakened the euro, adding to the buck's rally. A rising dollar pressures gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum losing 0.8% and 1.7%, respectively. Outlier palladium jumped added 0.8% for its twelfth straight winning sessions on expectations for higher demand from the auto industry.

At the Comex close: December gold fell $11.70 to $1,187.40; December silver lost 11 cents; January platinum dropped $14.40 to $814.70; and December palladium added $8.1, to $1,071.20 an ounce.