Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.9% but held above $1,200 as traders continued to take profits from its strong start to 2017. Upbeat U.S. data and hawkish comments from Janet Yellen about monetary policy also pressured the metal, which remains up 5% this year.

Manufacturing in the Philadelphia Fed region jumped unexpectedly in January, rising at the fastest pace in two months behind escalating orders and shipments. The improvement contrasted with the New York Fed region, which fell during the same period, lending optimism about the lagging sector in the first quarter.

First-time claims for unemployment benefits fell to the lowest level since 1973 last weak, signaling a tighter labor market.

Late yesterday, Fed Chair Janet Yellen said the FOMC is nearing its goals on full employment and faster inflation, and that interest rates may rise "a few times a year" until the end of 2019. Higher rates typically boost the dollar by attracting foreign exchange investment in search of higher yields.

The dollar rose early in today's session on Yellen's comments and because the ECB held interest rates unchanged. But the buck then fell into a 0.2% loss worries continued that Donald Trump, after declaring the dollar "too strong" last Friday, will work to devalue the currency in support of U.S. exports.

The other precious metals were mostly lower, with silver and platinum dropping 1.6% each while palladium ticked up less than 0.1%.

At the Comex close: February gold fell $10.60 to $1,201.50; March silver lost 27 cents cents, or 1.6%, to $17; April platinum dropped $15.50 to $956.40; and March palladium added 15 cents, to $751.15 an ounce.