Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 1.4% to close under $1,764 after upbeat US data underscored the possibility that the Fed may remove monetary easing more aggressively than expected at this week's meeting. It was the metal's lowest finish in three weeks.

Private employers added a solid 571,000 jobs in October, according to ADP. The increase was more than forecast and raises hopes that the more-authoritative federal nonfarm payrolls report will be similarly strong when released on Friday.

The ISM services index jumped to a record high last month as Covid cases receded and Americans increasingly spent money outside the home. The reading of 66.7 is the highest since the series was launched in 1997.

With the Fed expected to outline its taper of monetary easing later today, the upbeat data suggested that the labor market and overall economy is gaining momentum as the fourth quarter begins.

Gold fell sharply as traders speculated that the central bank may therefore be even more aggressive in moving toward raising interest rates to curtail extremely high inflation. Higher rates typically support the dollar, pressuring gold and other commodities by making them pricier in other currencies.

The other precious metals were also lower, with silver dropping 1.4% while platinum and palladium lost 1.7% and 1.1%, respectively.

At the Comex close: December gold fell $25.50 to $1,763.90; December silver dropped 28 cents to $23.23; January platinum slid $16.80 to $1,022.50; and December palladium shed $20.20 to $1,987.20 an ounce.