Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dropped 1.8% to close under $1,190, its lowest finish since early February, as soaring orders for U.S. durable goods boosted risk appetite and the dollar, cutting interest in safe-haven assets.

Orders for long-lasting goods jumped 4.8% in October, handily beating forecasts and posting the fourth straight month of increases. The rise came mostly on strong demand for commercial aircraft, which skyrocketed by 94%. Core capital goods, more directly tied to GDP growth, edged up 0.4%. Auto demand slipped 0.6% and business investment remained weak.

The Dow extended its rally on the upbeat data, adding another 0.2% to reach a new record high, while the other major U.S. stock indexes declined slightly.

The dollar also rolled higher, adding another 0.7% to reach a new 13-year high against major rivals. A rising dollar weighs on gold and other commodities priced in it for global trade by making them more expensive overseas.

The minutes from the November FOMC meeting showed increasing expectations among committee members that a rate hike would come "relatively soon." Released after the Comex close, the information had little effect on the gold price in electronic trade as a December hike is already, for the most part, priced in.

The other precious metals were also lower, with silver falling1.5% while platinum and palladium lost 1.3% and 0.9%, respectively.

At the Comex close: December gold dropped $21.90 to $1,189.30; December silver lost 24 cents to $16.39; January platinum slid $11.90 to $931.10; and December palladium shed 0.9%, to $737.40 an ounce.