Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained for a second day, adding 0.3% to close at $1,222, as U.S. missile strikes in Syria and a falling dollar spurred safe-haven buying. Physical demand appears to be rising, with the U.S. Mint selling 43,200 ounces in gold coins so far this month, marking a 73% increase over August and the best month since June.

In cooperation with Arab allies, the U.S. launched its first strikes against rebel and ISIS forces in Syria, expanding the scope of military actions in the Middle East. Warplanes and ship-launched missiles bombed dozens of targets, killing at least 70 ISIS fighters.

Mixed economic data out of China also supported safe-haven bids for gold. China's Beige Book showed slower growth, reduced business investment, and rising borrowing costs. These impediments in the world's second largest economy were somewhat offset by an unexpected rise in manufacturing.

The dollar lost ground against most rivals on speculation that softer recent housing will keep the Fed from raising interest rates by the middle of next year. Sales of existing U.S. homes fell nearly 2% in August, the first monthly decrease since March, and new housing starts also dropped last month.

The other precious metals were mostly higher, with platinum and palladium picked up 0.2% and 1.5%, respectively, while silver was virtually flat with a 1 cent rise. At the Comex close: December gold gained $4.10 to $1,222; December picked up one cent to $17.71; October platinum added $2.50, to $1,332.70; and December palladium rose 12.35 to $815.25 an ounce.