Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold broke its five-session winning streak, sliding 0.4% to hold above $1,183, after improving U.S. consumer sentiment boosted the dollar and stocks, cutting into demand for alternative assets. The metal finished the week 2.4% higher, reaching a four-month high yesterday on diminished expectations of a rate hike this year.

The University of Michigan index reported that consumer sentiment rebounded vigorously in October, achieving levels that typically support an annualized growth in consumer spending of around 4%. As consumer spending comprises roughly 70% of GDP, the survey raises hopes that the U.S. recovery may be back on track despite anemic manufacturing, shrinking exports, and the recent falloff in job growth.

The dollar and equities perked up, with the Dow and Global Dow adding around 0.2% and 0.5%, respectively, assisted by the upbeat data and reports that the ECB is likely to deepen its program of quantitate easing when it meets next week. Tantamount to printing yet more money, QE's expansion is expected to boost the dollar by undermining the euro.

The other precious metals were mixed for the day and week. Silver slipped 0.3% today but gained 1.9% this week. Platinum added 1.7% for a weekly gain of 4.3%. Palladium dropped 0.8% on the day and 1.2% on the week.

At the Comex close: December gold slid $4.40 to $1,183.10; December silver slipped 5 cents to $16.11; January platinum jumped $16.70 to $1,022; and December palladium dropped $5.60 to $699.40 an ounce.