Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.6% to close at $1,159, near a 10-month low, as the dollar strengthened and stocks rallied, reducing safe-haven demand.

The dollar picked up nearly 0.2% against major rivals as the Federal Reserve's two-day meeting on monetary policy commenced. With the market having priced in nearly a 100% chance of a quarter-point rate hike at this meeting, traders await for signals about additional increases next year. Rising rates boost the dollar and pressure gold and other commodities denominated in the currency for international trade.

Global stock indexes rallied, with the Dow adding 0.6% to a new record high and the Global Dow picking up 0.7%, as traders speculate on higher growth and corporate profits in a Trump administration dedicated to deregulation and lower taxes.

The other precious metals were mixed, with silver falling 1.2% while platinum and palladium, more directly tied to industry, added 0.3% and 0.4%, respectively.

At the Comex close: February gold dropped $6.80 to $1,159; March silver lost 21 cents to $16.98; January platinum picked up $3 to $936.70; and March palladium climbed $3.05 to $730.60 an ounce.