Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% as a spate of positive U.S. economic data boosted the dollar. Consumer confidence rose to a four-year high, according to the Conference Board; manufacturing rose at a faster pace in October, as reported by the ISM; and initial jobless claims fell last week while worker productivity improved. Equities rallied on the data, and the dollar rose on speculation that an improving economy could curtail QE3. A greek court ruling that austerity demands by the so-called troika (IMF, EU, ECB) may be unconstitutional drove the euro lower, which also helped to buoy the dollar and pressure gold. Silver and platinum tracked gold lower with losses of 0.2% and 0.3%, respectively, while palladium added 0.5%.

At the Comex close: December gold dipped $3.60 to $1,715.50; December silver dropped 7 cents to $32.25; December platinum for December fell $4.80 to $1,572.70; and while January palladium added $2.75 to $615.40 an ounce.

Industrial activity in China expanded for the first time in three months, adding to hopes that the world's second-largest economy is rebounding after a slowdown of nearly two years. As China gains more traction, gold and other commodities should see added demand. And the Indian festival season, which goes into full swing later in November, should add further support to gold in the near-term. Purchases of gold are considered auspicious in India, the world's largest gold consumer, during the religious festival of Diwali and the wedding season.