Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold dropped 0.6% to close at $1,270.50 as global equities rose again and the dollar held near a three-month high, reducing demand for alternative stores of value. The metal finished October down 1.1%.

World stocks extended their rally to 12 straight months of gains, a new record, behind upbeat economic data and solid corporate earnings. European equities were especially strong, rising 1.8% in October to the highest level in nearly six months, as Eurozone growth hit an annualized 2.5% and unemployment fell to an eight-year low.

US equities also gained, with the Dow and S&P 500 both adding 0.2%, after data showed consumer confidence climbed to a 17-year high last month and employment costs rose 0.7% in the third quarter. Rising compensation is a positive sign for future consumer spending, which comprises more than 70% of GDP.

The dollar traded sideways but remained on track for a 1.6% rise in October, its best month this year. The rebound has come mainly from improving US growth prospects and expectations that the Fed will raise interest rates again in December. The FOMC begins a two-day meeting on policy today but no change in rates is forecast. A stronger dollar typically weighs on gold and other commodities priced in it for global trade by making them more expensive overseas.

The other precious metals were mixed for the day but higher for the month. Silver lost 0.9% today but edged up 0.1% in October. Platinum dipped 0.3% on the day but managed a 0.5% rise this month. Palladium gained 1.7% today and 4.2% this month.

At the Comex close: December gold dropped $7.20 to $1,270.50; December silver slid 16 cents to $16.69; January platinum fell $3.10 to $919.60; and December palladium gained $16.50 to $979.15 an ounce.