Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished the quarter with an 11% gain, its strongest showing since the second quarter of 2010, as global monetary stimulus drove investors to seek out inflation hedges. The gold price slipped 0.4% today, coming under mild pressure as traders took profits to square their quarterly books, and a spate of disappointing U.S. economic data boosted the dollar. Consumer spending stagnated in August because of rising fuel costs and high unemployment. And for the first time in three years business activity contracted , as measured by the Institute of Supply Management in Chicago. Silver dipped 0.3% but still closed the quarter with a whopping 25% gain. Platinum rose 1.1% for the day and 15% for the quarter, while palladium added 0.9% for the day and almost 10% for the quarter.

At the close: December gold slid $6.60 to $1,773.90; December silver dipped 9 cents to $34.58; January platinum rose $18.20 to $1,669.30; and December palladium added $5.40 to $640.80 an ounce.

Prospects for the eurozone have taken a small turn for the better. Stress-tests of Spain's banks show them to need around 60 billion euros ($73 million) to become solvent, a figure that is giving the markets some relief because it is no more than expected. Yesterday, in another hopeful sign, the Spanish government outlined a budget that slashes 8.9% of this year's spending. These developments increase the odds that Spain will qualify for a bailout. If requested, the ECB plans to begin a bond-buying program similar to quantitative easing, which would support higher gold prices by further increasing the risk of long-term inflation.