Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold was little changed, inching down 80 cents to hold above $1,222, after upbeat news about Brexit and Italy sparked a risk rally, eroding interest in safe-haven assets.

After long and contentious negotiations, UK PM Theresa May has reached an agreement with the EU on the terms of Britain's divorce from the trading bloc. While the compact faces an uphill battle for approval from Parliament, where opposition is stout among both Tory and Labor Party members, it nonetheless stokes optimism that the chaos of a hard Brexit, with no trade or security deals, may be avoided.

Global stocks pushed higher, with the Dow and Global Dow both rallying by more than 1%, as the improved outlook for Brexit spurred risk appetite. In the US, strong Black Friday and Cyber Monday sales boosted retailing and tech stocks, helping Nasdaq to a rise of 1.8%.

Also fueling risk appetite, Italy's coalition government finally agreed to concessions on its budget, easing concerns that it will be sanctioned by the European Commission for fiscal irresponsibility. After weeks of refusing to limit its 2019 deficit to less than 2.4% of GDP, as required by the EC, Rome will trim it to around 2%. The conflict was widening Italian bond spreads and destabilizing the banking sector.

The dollar edged higher by 0.1%, further pressuring gold by making it more expensive in other currencies.

The other precious metals were mixed, with silver sliding 0.3% while platinum and palladium rose 0.3% and 0.9%, respectively.

At the Comex close: December inched down 80 cents to $1,222.40; December silver dropped 4 cents to $14.21; January platinum added $2.80, to $847.80; and December palladium gained $10.20 to $1,124.70 an ounce.