Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold futures edged up 60 cents to close above $1,230 after mixed data and equivocal minutes from the last Fed meeting nudged investors toward both risk and safety.

Jobless claims rose to a six-month high of 234,000 as more workers were laid off before the Thanksgiving holiday. Overall, though, the number of Americans collecting unemployment benefits remained near the lowest level since the 1970s.

Pending homes sales plunged to a four-year low in another sign that the crucial housing market has softened. The data follows reports that new-home sales fell to a three-year low last month and home-builder confidence tumbled to a four-year low this month.

On the plus side, consumer spending and incomes both rose in October while inflation, as measured by the Fed-preferred PCE gauge, held fast at 2%.

The dollar inched up 0.1% against major rivals, supported by Brexit uncertainty. The Bank of England released research warning of a drop in as much as 10.5% in GDP over five years if a no Brexit deal is reached before the UK departs the trading bloc in March.

Stocks rose slightly, with the Dow and Nasdaq adding 0.2%, on momentum from yesterday's Powell-inspired rally. Speaking in New York, the Fed Chair echoed recent comments from prominent FOMC members that interest rates are close to neutral, suggesting rate hikes may slow or end in 2019.

Partially supporting this dovish view, the minutes from the last Fed meeting showed widespread support for a December hike but growing reticence to extend the "gradual pace" of increases next year, stressing that policy will remain "flexible." Slower rate hikes are bullish for gold because they remove one of the dollar's key supports from the past three years.

The other precious metals were lower, with silver dropping 0.4% while platinum and palladium slid 0.7% and less than 0.1%, respectively.

At the Comex close: February gold, the new most-active contract, picked up 60 cents to $1,230.40; March silver slid 5 cents to $14.40; January platinum dropped $5.40 to $820.90; and March palladium dipped 50 cents to $1,151.40 an ounce.