Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,278 after upbeat US retail sales data and rising consumer inflation reinforced the likelihood of a December rate hike from the Federal Reserve.

Retail sales grew by 0.2% in October, beating forecasts with gains across the board. In addition, September's post-hurricane surge of 1.6% was revised upward to 1.9%. A strong labor market and higher consumer confidence point toward continued expansion entering the crucial holiday season.

The Consumer Price Index rose by a modest 0.1% in October, impeded by falling energy prices. But core CPI, which excludes volatile food and energy, rose by 0.2% for the month. More closely watched by the Fed, the annualized core CPI is now up 1.8%, the most since April.

With consumer inflation edging up and wholesale inflation sharply higher, as evident in October's PPI surge of 0.4%, the Fed is all but certain to increase interest rates by a quarter-point when it meets in December. Higher rates tend to weigh on gold by supporting the dollar. But higher inflation is typically bullish for the metal, which is often bought as a long-term store of value

The other precious metals were mixed, with silver and palladium falling by 0.6% and less than 0.1%, respectively, while platinum added 0.6%.

At the Comes close: December gold slid $5.20 to $1,277.70; December silver lost 10 cents to $16.97; January platinum gained $7.70 to $933.10; and December palladium dipped 45 cents to $985.10 an ounce.