Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 2.7% to settle below $1,333 as traders took profits from this week's epic, Fed-inspired rally. Following the FOMC's stunning decision on Wednesday to maintain quantitative easing at current levels, gold surged 4.7% and silver 8% for their biggest one-day gains in four years. The Dow and S&P both pushed to new record highs while the dollar and Treasury yields tumbled. Today, equities and precious metals backtracked somewhat, in part because of St. Louis Fed President James Bullard's sobering comments that the taper might begin in October, if unemployment data improves.

Gold analysts are now at their most bullish in three weeks, according to Bloomberg, eexpecting the unabated continuation of loose monetary policies to drive greater demand for gold as an alternative store of value and inflation-hedge. Despite today's partial retracement, gold finished the week with gains of 1.8%. Silver added 1% this week despite dropping almost 6% today. Platinum gave up 2.7% today for a weekly loss of 0.8%. Palladium fell 2.2% today but rose 3.3% this week.

At the Comex close: December gold fell $36.80 to settle at $1,332.50; December silver dropped $1.37 to $21.93; October platinum lost $40.40 to $1,432.60; and December slid $16.25 to $721.95 an ounce.