Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold fell $10.10 to close under $1,226 on rising risk appetite as U.S and global equities marched higher, cutting into demand for alternative assets.

All three major U.S. stock indexes rallied to new records, with the Dow adding 0.8% while Nasdaq and the S&P 500 rose 0.6%, as traders bet that policies to be enacted by Donald Trump will fuel growth and inflation. The Global Dow also caught the sentiment, rising 0.7%.

Last week's announcement that a substantial overhaul of income taxes will be forthcoming helped to rekindle a post-election risk-rally that had begun to fade in January. Executive orders loosening financial regulations also fueled gains by driving banking shares higher.

The dollar edged up 0.2%, pressuring gold and other commodities denominated in it for international trade by making them more expensive overseas. Traders are awaiting a pair of speeches later this week by Fed Chair Janet Yellen for additional clues on the direction of interest rates.

Oil prices fell lost nearly 2%, dropping for the first time in four session, on concerns that gains in the U.S. shale industry will contribute to overproduction. Gold often trade sin sympathy with oil as a hedge against energy-related inflation.

The other precious metals also fell, with silver dropping 0.6% while platinum and palladium slid 1.1% and 1%, respectively.

At the Comex close: April gold fell $10.10 to $1,225.80; March silver dropped 11 cents to $17.82; April platinum lost $11.40 to $1,000.30; and March palladium slid $8.15 to $774.95 an ounce.