Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.4% to close above $1,264 as the dollar and equities pulled back, boosting demand for alternative assets. The metal has risen 3% in the past six sessions and is up 10% for the year.

The dollar fell 0.2% against major rivals after mortgage applications tumbled nearly 5% last week, raising questions about momentum in the crucial housing market. Potential buyers are reportedly spooked by the Republican tax plan, passed today, which limits mortgage deductions. Applications for mortgages are now 8% lower than one year ago.

Concerns about future home purchases offset data showing sales of existing homes hit an 11-year high in November. Comprising 90% of the housing market, existing-home sales are up nearly 4% in the past 12 months.

Equities dipped slightly, with the Dow and S&P 500 down around 0.1%, as tax reform finds its way to President Trump's desk. Hopes for tax cuts have driven stocks to record highs all year. The actual signing into law of tax reform may prove anti-climactic, with gains already priced into share prices.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium picked up 0.8% and 0.6%, respectively.

AT the Comex close: February gold gained $5.40 to $1,264.20; March silver climbed 12 cents to $16.27; January platinum added $7.40, to $921.50; and March palladium rose $6 to $1,024.60 an ounce.