Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped another 0.3% to close under $1,238, its lowest level since early July, as a new wave of mildly upbeat economic data raised bets that the Fed will taper quantitative easing in the near future, diminishing gold's safe-haven allure.

The Conference Board's leading economic indicators rose 0.2% in October, beating expectations; the University of Michigan index of consumer sentiment picked up in November; and orders for durable goods dropped less than forecast in October.

Combined with jobless claims falling to a two-month low last week, the fresh data could induce the Fed to scale back monetary stimulus when it meets next month. The central bank has said improvements in the labor markets are the key element in deciding when to taper quantitative easing, its $85 billion-per-month bond-buying program, which has boosted gold prices by devaluing the dollar. The dollar gained on the upbeat news while the other precious metals fell further than gold, with silver losing 1.1%, platinum 1.4%, and palladium 0.4%.

At the Comex close: February delivery gold slipped $3.60 to $1,237; March silver dropped 21 cents to $19.68; January platinum lost $19.20 to $1,352.70; and March palladium fell $2.50 to $715.95 an ounce.

China's gold imports from Hong Kong rose again in October to just under an all-time monthly high of 130 tons as bullion retailers and jewelers laid in stock for the annual period of peak sales. China's appetite for physical gold bullion appears nearly insatiable. Demand is expected to exceed 1,000 tons this year, more than the U.S., Europe and the Middle East combined, as China surpasses India for the first time as the world's leading gold-consuming nation, according to the World Gold Council.