Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5%, closing at $1,445.50, as a stronger dollar caused traders to take profits after the metal's two-day rise of 1% to a six-week high.

Consumer inflation was slightly stronger than expected in September, with the CPI gaining 0.1% after falling 0.2% in August. The uptick helped the dollar rise to a five-day high against its major rivals as traders viewed the price data as evidence that deflation isn�t taking hold. Nonetheless, the ongoing weakness in inflation gives the Fed greater latitude to keep interest rates near zero, something that is supportive of higher gold prices.

A rising dollar pressures gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies. The other metals were also weaker today, with silver falling 1.8% while platinum and palladium dropped 1.2% and 0.9%, respectively.

At the Comex close: December slipped $6.20 to $1,245.50; December silver dropped 32 cents to $17.23. January platinum lost $16.20 to $1,266.80; and December palladium dipped $6.80 to $769.20 an ounce.