Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close at a three-week high near $1,274 as softness in the dollar and equities boosted safe-haven demand.

The dollar rolled back 0.2% against major rivals after ECB head Mario Draghi said the central bank was unlikely to keep interest rates negative for too long. Though typically cagey about details, Draghi signaled enough hawkishness to cause traders to bid up the euro at the dollar's expense.

Falling consumer confidence also pressured the buck as the Conference Board's index fell by more than expected. Attitudes toward current economic conditions and the six-month outlook both fell after climbing in the previous two months. A weaker dollar supports gold and other commodities that are priced in it for international trade.

U.S. stocks receded on the confidence data and disappointing earnings from major corporations like 3M and Home Depot, with the Dow dropping 0.3% and Nasdaq twice that much. Treasury yields also fell as investors shifted toward safety.

Gold prices received further support from rising physical demand in India, the world's second-largest gold-consuming nation, in advance of the festival and wedding season beginning at the end of October. Gold purchases are considered auspicious during this time.

The other precious metals also finished higher, with silver picking up 1% while platinum and palladium added 2.8% and 0.7%, respectively.

At the Comex close: December gold gained $9.90 to $1,273.60; December silver rose 18 cents to $17.78; January platinum jumped $25.80 to $964.90; and December palladium added $4.10, to $634.85 an ounce.