Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close under $1,131 as the dollar edged up on mixed U.S. economic data, damping demand for alternative assets

The buck has now gained 5.1% since 11/8, hovering near 14-year highs on speculation that Donald Trump�s promise to slash taxes and regulations while rebuilding infrastructure will balloon the national debt and stoke higher inflation, prompting the Fed to accelerate rate hikes. Higher rates attract foreign exchange investment in search of higher yields, bidding up the dollar. Gold has slid around 11% since Trump's election but remains 6% higher year-to-date.

New orders for core capital goods rose more than expected last month, per the Commerce Department, suggesting that business investment is beginning to rebound after lagging the rest of the economy. Orders for non-defense machinery excluding aircraft increased by 0.9% after a rise of 0.2% in October.

U.S. GDP for the third quarter was revised up to 3.5% from the prior estimate of 3.2%, propelled by strong consumer spending and an upward revision in business spending from 0.1% to 1.4%. However, the Atlanta Fed trimmed its forecast for Q4 growth to 2.5% on slacker home resales, personal spending and investment.

The Chicago Fed's national activity index fell into negative territory in November, signaling softer U.S. factory production. And overall durable goods order fell for the first time in five months. Consumer spending picked up slightly while household incomes failed to increase for the first time in nine months,

The dollar edged higher behind the net-positive data, adding 0.1% against major rivals after waffling earlier in the session. A stronger dollar typically weighs on gold and other commodities denominated in it for international trade by making them more expensive for users of other currencies.

The other precious metals also fell, with silver dropping 0.7% while platinum and palladium lost 0.8% and 0.5%, respectively.

At the Comex close: February gold for delivery dipped $2.50 to $1,130.70; March silver dropped 11 cents to $15.87; January platinum lost $7.00 to $907.40; and March palladium slid $3.30 to $656.60 an ounce.