Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.8% to close under $1,334, reversing a two-day winning streak as U.S. equities and the dollar crept higher, cutting into demand for safe havens.

The Dow took another run at 20,000, rising mid-session to all-time high of 19,988, as post-election appetite for risk marches on. The Dow has now risen around 9% since November 8, with the S&P 500 adding 6%. Traders view a Trump presidency as bullish for corporate profits, largely because of his promises to slash corporate income taxes and regulations.

The dollar reversed direction after two losing sessions, rising 0.2% to a fresh 14-year high, after bullish comments from Fed Chair Janet Yellen. Speaking yesterday in Baltimore, Yellen said the labor market the strongest in a decade and wage growth is picking up, which traders took to mean tighter monetary policy next year.

Higher rates typically weigh on gold and other commodities by boosting the dollar, which makes them more expensive overseas.

The other precious metals were mixed, with silver and platinum gaining 0.2% and 0.7%, respectively, while palladium lost 1.2%.

At the Comex close: February delivery gold slid $9.10 to $1,133.60; March silver added 3 cents to $16.12; January platinum gained $6.70 to $924 ; and March palladium dropped $7.85 to $670.85 an ounce.