Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.3% to close under $1,264 after upbeat manufacturing data in the U.S. and abroad whetted risk appetite, boosting the dollar and damping demand for alternative assets.

Market's flash PMI showed U.S. manufacturing rebounded in October, rising from a three-month low in September, behind the fastest increases in new order and goods produced in a year. The data signaled the possibility of a solid Q4 for the beleaguered sector, which has been hammered by weak demand, slow growth, and the strong dollar.

Manufacturing in Europe and Japan also rebounded, according to Markit, with factory activity in Germany and France jumping to 33-month and 31-month highs, respectively.

The dollar extended its gains to a new eight-month high, picking up 0.2% against major rivals, on the strength of the PMI reports. A stronger dollar typically weighs on gold by making it more expensive to users of other currencies.

Wall Street rallied to a two-week high, pulling demand away from safe-haven assets, as an uptick in mergers and better-than-expected earnings from bellwethers like Apple and Boeing reinforced risk appetite.

The other precious metals finished higher, with silver picking up 0.3% while platinum and palladium, more directly tied to industry, gained 0.7% and 1.6%, respectively.

At the Comex close: December gold sipped $4 to $1,263.70; December silver added 11 cents, to $17.60; January platinum picked up $6.80 to $939.10; and December palladium gained $10, to $630.75 an ounce.