Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.5% to close under $1,288 as a Eurozone bank bailout stoked risk appetite and boosted the dollar.

Portugal's central bank yesterday announced its plan to rescue failing Banco Espirito Santo, the nation's second-largest lender, by pumping in billions of euros of capital, breaking the bank into small units, and sequestering its toxic assets. It was feared that failure of so large a bank could have created contagion throughout the region and damaged the fragile Eurozone recovery.

U.S. and global equities received a lift from the bailout, with the S&P jumping 0.7%. The dollar also rose against most rivals, pressuring gold and other commodities denominated in the currency for international trade. Silver and palladium dropped 0.7% and 1.1%, respectively, while platinum bucked the trend by eding up 0.2%.

At the Comex close: August gold slid $5.90 to $1,287.70; September silver fell 14 cents to $20.23; October platinum edged up $3.30 to $1,466.60; and September palladium dropped $9.45 to $855.10 an ounce.