Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.7% to close above $1,251 as rising U.S. equities and a stronger dollar prompted traders to take profits from yesterday's 1.6% surge. The Dow added 0.5% and Nasdaq gained 0.9%, pulling money from safe havens after U.S. factory orders for December came in better than expected. While overall orders fell 1.5%, new orders outside of the volatile transportation sector gained for the third straight month, mitigating fears of a major slowdown.

The dollar rose against most major rivals while several emerging market currencies, notably those of Turkey and South Africa, also strengthened, reducing demand for gold as an alternative store of value. The other precious metal were mostly weaker, with platinum and palladium falling 1% and 0.4%, respectively, while silver edged up 0.1%.

At the Comex close: April gold dropped $8.70 to $1,251.20; March silver edged up 1 cent to $19.42; April platinum fell $13.20 to $1,373.40; and March slid $2.60 to $700.10 an ounce.