Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold closed unchanged at $1,463.60 after upbeat US economic data lifted stocks and the dollar, undercutting demand for alternative assets. The metal traded above $1,473 earlier in the session before slipping back on rising risk appetite, ending the week with a loss of 0.3%.

IHS Markit reported its flash PMIs for both US manufacturing and US services were sharply higher in November, fueling hopes that the decade-long expansion is recovering from its recent slow patch. Manufacturing expanded at the fastest pace since April, while the services sector grew by the most since July.

Separately, consumer sentiment rebounded this month after falling in October, according to the University of Michigan survey, as Americans became more hopeful about a trade deal with China. Comprising roughly 70% of the GDP, consumer spending has been the economy's primary bulwark against recession as the 16-month trade war has hammered manufacturing.

The Dow added 0.3% as the upbeat data stoked risk appetite among investors. The dollar also rose 0.3%, pressuring gold and other commodities priced in it for global trade by making them more expensive overseas.

Conciliatory comments from China and the US about reaching a trade agreement further supported risk-on sentiment. President Trump said today that a deal is "potentially very close." His Chinese counterpart, Xi Jinping, asserted yesterday that China wishes to work toward completing a pact soon.

The other precious metals were mixed on the day and week. Silver dropped 0.4% today but rose 0.3% this week. Platinum fell 2.7% but held a weekly rise of 0.2%. Palladium gained 0.7% today and 3.6% this week.

At the Comex close: December gold was flat at $1,463.60; December silver dropped 7 cents to $17; January platinum lost $24.90 to $892.60; and December palladium gained $11.50 to $1,743.40 an ounce.