Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.3%, the most in two-weeks, to close at $1,229 as upbeat economic data combined with higher reported corporate earnings to boost risk appetite.

Manufacturing in the Eurozone rose unexpectedly last month, reducing risk of recession, with Germany's factory gauge rising nearly 2%. China's factory activity also rose, indicating that the world's second-largest economy may be pulling out of its recent downturn in exports and overall growth.

Closer to home, U.S. manufacturing slipped to a three-month low but still showed momentum and first-time jobless claims rose by 17,000 but held under 300,000 for the sixth straight week. Home prices rose in August, beating estimates, and the Conference Board's index of economic indicators edged up 0.8% in September after remaining flat in August.

The generally positive data stoked risk appetite, causing traders to take profits from the recent gold rally and shift into equities. The Dow surged more than 230 points, or 1.4%, and the Global Dow added 0.4%.

The other precious metals were mostly lower, with silver and platinum dropping 1.8% and 1.2%, respectively, while outlier palladium added 0.2%.

At the Comex close: December gold fell $16.40 to $1,229.10; December silver dropped 32 cents to $17.23; January platinum slid $16 to $1,255; and December palladium added $1.55 to $778.25.