Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold edged down less than 0.1% to close above $1,264 as yields for Treasury bonds rose on strong housing data and the House passed the Republican bill to overhaul taxes.

Home-builder sentiment jumped this month to its highest reading in 18 years, according to the industry's leading index, pointing to momentum in the key housing sector entering the first quarter of 2018. Separately, housing starts rose again in November, with totals running nearly 13% higher than a year ago.

Treasury prices fell, pushing up yields on benchmark 10-year notes to an eight-week high, as robust housing data strengthened the outlook for the economy. The dollar bounced off early-session lows, pressuring gold's early gains into a mild loss.

Gold held its place after the House passed the reconciled version of the Republican tax plan, setting the stage for the Senate vote tonight. With sharp cuts in taxes for some individuals and all corporations, the plan is expected to boost inflation, which is a double-edged sword for gold. On one hand, rising inflation boosts the dollar, which typically pressures gold and other commodities priced in it for global trade. On the other hand, gold is widely purchased as a hedge against rising inflation.

The other precious metals were mixed, with silver slipping 0.3% while platinum and palladium added 0.1% and 0.6%, respectively.

At the Comex close: February dipped 90 cents to $1,264.20; March silver slipped 5 cents to $16.15; January platinum added 90 cents, to $914.10; and March palladium climbed $5.25 to $1,018.60 an ounce.