Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold picked up 0.1% to close near $1,257 as soft U.S. industrial data pressured the dollar, boosting demand for alterative stores of value.

Manufacturing in the New York Fed region fell deeper into contraction this month, dropping to minus 6.8 from minus 2 in September, for the weakest reading since May. Nationally, industrial production barely rose in September, edging up 0.1% after declining by 0.5% in August, according to the Federal Reserve. Manufacturing has been hammered by the strong dollar, soft global demand, and low oil prices.

The dollar retreated after the soft data, dropping 0.3% against major rivals. A weaker dollar typically supports gold and other commodities denominated in it for international trade by making them less expensive to users of other currencies.

Gold's gain, and the dollar's losses, were limited by expectations that the Fed will raise interest rates in December. Fed Vice-Chair Stanley Fischer said today that the central bank is "very close" to meeting its employment and inflation goals," though he gave no clues about the timing of the next rate hike.

Major stock markets fell around the world, with the Dow and Global Dow both sliding around 0.3%, while U.S. Treasure bonds gained alongside gold on flights to safety.

The other precious metals were mixed, with silver adding 0.2% while platinum and palladium lost 0.4% and 1.6%, respectively.

At the Comex close: December gold added $1.10, to $1,256.60; December silver picked up 3 cents to $17.47; January platinum slipped $3.30 to $936.20; and December palladium fell $10.50 to $637.80 an ounce.