Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close just under $1,219 as pro-democracy riots in Hong Kong spurred a pullback in global equities, increasing safe-haven demand.

Protests against China's decision to limit Hong Kong elections turned violent as police used pepper spray to disperse tens of thousands of students who had taken to the streets, closing banks and offices and disrupting the city's extensive financial district. The Hang Seng equity index tumbled 2% while the Asia Dow dropped 1% and the U.S. Dow slid 0.25%.

Gold initially rose as high as $1,223 before reports that U.S. consumer spending rose 0.5% in August after a flat July, adding to speculation that momentum in the U.S. recovery may prompt the Fed to raise rates earlier than expected. Chicago Fed President Charles Evans discounted sooner tightening, however, telling CNBC that it will be "quite some time before it becomes appropriate the raise rates," probably after next summer. Last Friday, the Atlanta Fed's Dennis Lockhart made a similar case against earlier hikes, saying persistently weak demand, at home and abroad, is still hampering the economy.

The other precious metals tracked higher with gold. Silver edged up 0.2% while platinum added 0.6% and palladium picked up 0.7%. At the Comex close: December gold gained $3.65 to $1,218.80; December silver added more than 3 cents to $17.57; January platinum rose $7.80 to $1,309.50; and December palladium climbed $5.48 to $789.50 an ounce.