Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold recouped 1.5% to close at $1,065 as bargain hunters entered the market following yesterday's 2.5% drop. A weaker dollar and falling equities aided the metal's rise, which nonetheless finished the week with a 1% loss after the Federal Reserve announced a quarter-point rate hike on Wednesday.

The dollar weakened against a basket of rivals, pressured especially by the yen after the Bank of Japan surprised the market by holding quantitative easing at current levels. Tantamount to printing money, QE weakens a nation's currency by flooding its economy with additional liquidity. A falling dollar boosts gold and other commodities by making them less expensive overseas.

Gold also gained support from safe-haven bids as global equities fell again on slumping oil and diminished hopes for growth next year. The Dow lost 1.7% while the Global Dow slid 1.1% and oil surrendered 1% to close under $35 per barrel again.

The other precious metals were higher for the day and week. Silver jumped 2.9% for a weekly rise of 1.5%. Platinum added 1.9% today and 2% this week. Palladium edged up 0.3% on the day for a 2.6% gain this week.

At the Comex close: February gold recouped $15.40 to $1,065; March silver jumped 39 cents to $14.10; January platinum picked up $16.10 to $860.80; and March palladium added $1.50, or to $558.95 an ounce.