Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold gained 0.5% to close above $1,277 as bargain-hunters entered the market despite a spate of upbeat US data and new signals from the Fed supporting a December rate hike.

The ISM manufacturing index fell slightly but held near the 13-year high achieved in September, as an improved global economy and a cheaper dollar boosted demand for US exports. Separately, the private sector added 235,000 jobs in October, according to ADP, bouncing back strongly from September's meager 110,000.

The Federal Reserve concluded its two-day meeting on monetary policy by keeping interest rates steady, as expected. In its post-meeting statement, the central bank upgraded its assessment of economic growth to "solid" from "moderate," suggesting a December hike is likely.

Following the statement's release, gold initially retreated to around $1,275 in electronic trade after hours. Higher interest rates typically weigh on the gold and other commodities by boosting the dollar. But the metal quickly recouped its gains and pushed back above $1,277, signaling substantial support at current prices.

The dollar added around 0.3% against major rivals on the positive economic reports. Long-term Treasury yields fell, however, after the Fed held interest rates unchanged.

The other precious metals also finished higher, with silver jumping 2.9% while platinum and palladium each added 1.9%.

At the Comex close: December gold gained $6.80 to $1,277.30; December silver jumped 48 cents to $17.18; January platinum climbed $15.10 to $936.70; and December palladium rose $19 to $998.15 an ounce.