Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.3% to close at $1,273.20 as US equities hit new records and the dollar rallied on upbeat data, reducing demand for alternative assets.

Factory orders rebounded 1.2% in August after plunging in July, the Commerce Department reported today, with durable goods orders rising 2%. In addition, the trade deficit dropped 2.7% to an 11-month low behind increased exports of drugs, computer chips, and networking gear.

The dollar climbed 0.5% to a 10-week high against major rivals as the strong data further boosted expectations for a rate hike from the Fed in December. A rising dollar weighs on gold and other commodities priced in it for international trade by making them more expensive in other currencies.

All three main US stock indexes pushed higher into record territory, with the Dow and S&P 500 adding 0.5% while the Nasdaq rose 0.8%. It was the sixth straight record close for the S&P 500, the longest streak since 1997.

Stocks were also supported by hopes that the Republican plan to cut corporate taxes is building momentum. The House passed a budget today, which is the first step toward enabling the Senate to pass tax reform with a simple majority through a process known as reconciliation. Otherwise, 60 votes would be needed, including some from Democrats, making passage unlikely.

The other precious metals all finished higher, with silver adding 0.1% while platinum and palladium rose 0.4% and 1.8%, respectively.

At the Comex close: December gold dropped $3.60 to $1,273.20; December silver added one cent $16.64; January platinum rose $2.50 to $918; and December palladium jumped $19.60 to $936.50 an ounce.