Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.6% to close at a two-week low above $1,266 as risk appetite continued to rise in the wake of Trump's surprise election, reducing safe-haven demand.

The Dow rose for a fourth session, adding another 1.4% to reach a new high above 18,848, as traders speculated that Trump's promises of lower corporate taxes, fewer regulations, and more spending on infrastructure will benefit a variety of industries. Heathcare, financial, and industrial shares led the way.

The dollar also extended its rally, rising 0.2% against a basket of rivals and 1% against the yen, on bets that a Trump presidency will stoke inflation, thereby accelerating rate hikes from the Fed. Long-term Treasury yields also rose on expectations of higher inflation.

While Trump's inflationary policies may pressure gold in the short-term by strengthening the dollar, they are likely to be bullish for gold in the long run as traders look for hedges to preserve buying power.

The other precious metals were mixed, with silver and palladium gaining 2% and 2.2%, respectively, while platinum fell 2.1%.

At the Comex close: December gold dropped $7.10 to $1,266.40; December silver rose 36 cents to $18.74;January platinum slid $21.10 to $982.20; and December palladium picked up 15.05 to $696.50 an ounce.