Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged up 0.2% to close just under $1,232 as a falling dollar boosted demand for alternative stores of value. Following two straight weekly gains, the metal finished a loss of 0.6% this week as rallying equities stimulated appetite for risk.

The dollar fell against a basket of rivals led by the euro, which is trading higher in reaction to unexpected growth the Eurozone. The buck was also pressured by flights to safety following news that a doctor in New York contracted Ebola, raising concerns about the possible spread of the virus. A falling dollar boosts prices for gold and other commodities denominated in the currency for international trade by making it less expensive to foreign buyers.

Gold's gains were capped by rising U.S. and global equities. The Dow and S&P 500 extended yesterday's gains, rising another 0.6% each on improved corporate earnings and data showing new home sales hit a six-year high in September. Optimism about the housing market was tempered, however, by sharp downward revisions for new homes sales in August. Global shares as measured by the MSCI world equity index had their biggest week since July 2013.

The other metals were mixed for the day and week. Silver added 0.2% today and but subtracted 0.8% for the week. Platinum shed 0.3% for the day but gained 0.8% for the week. Palladium rose 0.2% today and a whopping 3.2% this week.

At the Comex close: December gold edged up $2.70 to $1,231.80; December silver added 2 cents, to $17.18; January platinum shed $4.10 to $1,250.90; and December palladium rose $1.60 to $780.90 an ounce.