Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% to close just above $1,317 as global equities rebounded on diminished concerns over Deutsche Bank's cash flow. Finishing September 0.4% higher, the metal posted a 0.3% loss for the third quarter but remains up 24% so far this year.

AFP reported today that Deutsche Bank, one of Europe's largest financial institutions, is nearing a deal with the U.S. Justice Department to cut $14 billion in fines by nearly two-thirds, to just $5.4 billion. The settlement results from violations in selling mortgage bonds leading up to the financial crisis in 2008.

Markets tumbled yesterday on fears that the bank's possible inability to meet its obligations might trigger contagion throughout the Eurozone, where many banks have been stressed by negative interest rates and problem loans. Those fears appear to have moderated today.

All three major U.S. stock indexes rallied more than 1%, pulling monies from safe havens like gold and Treasury bonds, while the dollar traded flat against major rivals.

U.S consumer spending fell in August, according Commerce Department data released today, raising more questions about the economy's momentum. The Atlanta Fed cut it forecast for Q3 growth to 2.4%, far below its 3.9% projection six weeks ago, because of consistently weaker data this month.

The other precious metals were mixed on the day but higher for the quarter. Silver edged up 0.1% today and 3.2% this quarter. Platinum dipped 0.3% today but scored a 3.2% quarterly gain. And palladium added 0.3% on the day for a whopping gain of 21% in Q3.

At the Comex close: December gold lost $8.90 to $1,317.10 December silver added nearly 3 cents, to $19.21; January platinum dipped $2.70 to $1,034.50; and October palladium picked up $2, to $721.50 an ounce.