Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5%, closing above $1,285, as geopolitical tensions stoked safe-haven demand despite strong U.S. data and rising risk appetite.

Escalating violence in the Ukraine, airstrikes by Egypt and the UAE against radical Islamists in Libya, the rising likelihood of U.S. intervention in Syria, and the ongoing conflicts in Gaza and Iraq have combined to pull investors back into the metal after recent losses, pushing it as high as $1,290 today in intraday trade.

Gold's gains were capped by rallies in equities after the Conference Board reported that U.S. consumer confidence rose to almost a seven-year high in August, boosted by optimism about the job market. In addition, orders for durable goods jumped 22% last month, although almost all of the gains came on overseas demand for aircraft while orders in other areas actually fell. Home prices also fell in June, raising some concern about the strength of the housing recovery. The S&P 500 closed at 2,000 for the first time.

The other precious metals were mostly higher, with silver and platinum picking up 0.1% each while palladium slipped by the same amount.

At the Comex close: December gold gained $6.30 to $1,285.20; September silver added 3 cents to $19.39; October platinum picked up $1.20, to $1,419.60; and September palladium slipped $1.05 to $888.70 an ounce.