Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— After trading higher for most of the session, gold dipped to close under $1,224 for a loss of less than 0.1% as the dollar's rally continued.

Gold climbed as high as $1,233 earlier in the session on bargain-hunting after its 6% decline last week. Uncertainty about the president-elect Trump's policies, both domestically and on the world stage, have also created an undercurrent of safe-haven demand despite the sell-off.

The dollar gained nearly 0.4% against major rivals, hitting a 13-month high, on expectations that a Trump presidency will increase fiscal spending, slash taxes, boost inflation, and increase government debt. A stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive overseas.

Wholesale inflation was tame in October, with the PPI showing no overall change as rising energy costs were offset by falling prices in the services sector. The moderate inflationary pressure is seen as unlikely to deter the Fed from raising interest rates when it meets next month. CME FedWatch shows the markets pricing-in a likelihood of nearly 91% for a quarter-point bump.

The other precious metals were mixed, with silver dropping 0.7% while platinum and palladium added 1.3% and 1.8%, respectively.

At the Comex close: December gold dipped 60 cents to $1,223.90; December silver dropped 11 cents to $16.93; January added $11.80, to $946.50; and December gained $12.85 to $718.80 an ounce.