Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained for the third straight session, adding 0.1% to close above $1,165, as soft trade data from China undermined global equity markets, boosting safe-haven demand.

China's imports plunged by 20% in September and exports fell 3.7%, signaling that the world's second-largest economy continues to lose momentum. With demand falling at home and abroad, China's combined imports and exports have now contracted by more than 8% for the year, in sharp contrast to the official target of 6% growth.

Stocks retreated on the weak data, with the Dow dropping 0.3% while the Global Dow dumped 1%. Demand for U.S. Treasury bonds surged on flights to safety, pushing yields down to a one-week low.

The dollar slipped again, supporting higher prices for gold and other commodities, as traders see the likelihood receding that the Fed will raise interest rats this year. Fed governor Daniel Tarullo joined colleague Lael Brainard in asserting that the central bank should not hike rates until 2016. Even then, an increase should only come with "tangible evidence" of "pickups in wages or inflation."

The other precious metals were mixed on the day, with silver adding 0.3% while platinum and palladium dropped 0.3% and 1.3%, respectively.

At the Comex close: December gold added 90 cents, to 1,165.40; December silver rose 4 cents to $15.91; January platinum slipped $3.30 to $992.60; and December palladium lost $9.30 to $685.35 an ounce.