Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— In wildly volatile trade, gold inched down 0.1% to $1,273.50 following Donald Trump's surprising victory in the U.S. presidential race. The metal skyrocketed 5% to $1,338 overnight as markets reeled from the initial shock, only to surrender those gains late in today's session after rising risk appetite replaced flights to safety.

U.S. stocks whiplashed from deep initial losses to solid gains as the impact of Trump's victory came into focus. Overnight, the Dow dumped nearly 800 points, or 5%, in panicked selling as investors realized they had priced-in the wrong outcome. The index then rebounded strongly to make up that loss and gain 1.5% in today's session, led healthcare and financial shares. Trump's vows to dismantle Obamacare and financial regulations are seen as potentially benefitting those industries.

Oil prices finished almost 0.5% higher as traders expect Republican control of government to mean fewer barricades to drilling.

After falling 2% overnight, the dollar swung to a 0.5% gain against major rivals as traders bet that Trump's protectionism and tax cuts may boost inflation, accelerating the pace of rate hikes from the Fed. A rising dollar typically pressures gold and other commodities denominated in it for international trade by making them more expensive overseas.

The other precious metals were mixed. Silver added 0.1% after soaring nearly 4% higher earlier in the day. Palladium added 2.4% while platinum dropped 0.5%.

At the Comex close: December gold dipped $1 to $1,273.50; December silver picked up 2 cents to $18.36; January platinum lost $5.30 to $1,003.30; and December palladium gained $15.95 to $681.45 an ounce.