Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.9% to close at a month low of just over $1,114 as a rally in the dollar and equities ate into safe-haven demand. It was gold's fourth consecutive down session, the most since late September.

The dollar gained against major rivals as traders positioned for a solid U.S. nonfarm payrolls report, due on Friday. Expectations of deeper monetary easing in Europe, Japan, and China to combat deflation and slower growth also boosted the buck following last week's hit from the Fed that it may raise interest rates in December. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

U.S. stock rose despite tepid corporate earnings reports, with the Dow gaining 0.7% while the S&P 500 and Global Dow both added 0.5%.

The market shook off a report from the Commerce Department showing that new orders for factory goods declined for the second straight month. Demand for most categories of manufactured goods continue to fall victim to the strong dollar and shrinking global demand. The one area of strength is among U.S. automakers, which are on track for the best year since 2001.

The other precious metals were also lower, with silver sliding 0.9% while platinum and palladium dropped 1.7% and 1%, respectively.

At the Comex close: December gold fell $21.80 to $1,114.10; December silver slid 17 cents to $15.24; January platinum dropped $16.20 to $962.20; and December palladium lost $6.35 to $644 an ounce.