Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for the fifth time in six sessions, gold edged 0.1% higher to close above $1,270 as net-negative economic data pressured the dollar, boosting demand for alternative stores of value.

In the government's final revision for Q3, growth was downgraded from 3.3% to 3.2% because of softer consumer spending than initially recorded. Of greater concern to the Fed, the core PCE index, its preferred measure of inflation, dropped to 1.3% in the quarter, well-below the 2% target.

The Chicago Fed's index of national economic activity cooled in November after an October spike because of a pullback in factory output. The Philly Fed, meanwhile, posted an increase in December manufacturing in its region. Separately, US jobless claims jumped last week by the most in more than three months.

The dollar dipped 0.1% against major rivals on the tepid data. A softer dollar supports gold and other commodities priced in it for global trade by making them less expensive to users of other currencies.

Gold also received a mild lift from rising oil prices as crude futures closed 0.5% higher on strong refinery demand and falling inventories. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mixed, with silver and platinum sliding 0.2% each while palladium added 0.5%.

At the Comex close: February gold gained $1 to $1,270.60; March silver dropped 3 cents to $16.24; January platinum dipped $1.80 to $919.70; and March palladium picked up $5.05 to $1,029.65 an ounce.