Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% in regular trading to close under $1,254 as the dollar picked up momentum ahead of the release of minutes from the September FOMC meeting. But gold bounced back into gains, rising as high as $1,261 in electronic trade, after the minutes showed continued uncertainty over the timing of the next rate increase.

At their meeting last month, several voting Fed members said a rate hike would be needed "relatively soon if economic developments unfolded about� as expected." But the majority argued for "proceeding cautiously," wanting "further evidence" that employment and inflation are progressing toward policy targets.

While the minutes left little doubt that a hike is coming soon, they nonetheless relieved traders who were bracing for more hawkish sentiment after three Fed officials had dissented from September's decision to hold rates unchanged, signaling an unusual level of disagreement.

The dollar rose 0.3% early in the session, pressuring gold and other commodities denominated in it for indentation trade, but then surrendered almost all of those gains in after-hours trade. Treasure yields also fell.

The other precious metals were mixed. Platinum fell 0.8% to a six-month low after a two-year labor agreement between the National Union of Mineworkers and South Africa's Impala Platinum, ending a refinery strike. Silver finished flat and before adding 0.3% after the Fed minutes, while palladium gained 0.2%.

At the Comex close: December gold slipped $2.10 to $1,253.80; December silver was virtually flat at $17.51; January platinum lost $7.90 to $941.90; and December palladium picked up 95 cents to $649.10 an ounce.