Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.7% to close just under $1,074 after Turkey shot down a Russian warplane, escalating tensions in the Middle East and triggering safe-haven buying.

The Turkish military destroyed a Russian fighter jet after it crossed into Turkey from Syria and ignored a reported 10 warnings to leave. Putin categorically denied the violation of Turkish airspace and called the action a "clear stab in the back." It was the first Russian plane shot down by a NATO member since the 1950s.

Global stocks immediately sold off as investors shifted toward safety in gold and U.S. Treasury bonds, worried that the incident will deepen geopolitical risk and further destabilize the volatile region. Oil jumped to its highest levels in three weeks on possible supply disruptions.

The dollar fell back, supporting demand for gold and other commodities denominated in it for international trade. The buck's weakness came despite data released by the Commerce Department revising GDP upward in the third quarter, from 1.5% to 2.1%.

The other precious metals were mixed, with silver and palladium picking up 0.9%and 0.2%, respectively, while platinum fell 0.7%.

At the Comex close: December gold gained $7 to $1,073.80; December silver picked up 13 cents to $14.16; January platinum fell $5.70 to $841.70; and December palladium added 15 cents, to $541.50 an ounce.