Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% to close near $1,222 as a massive sell-off in U.S. and global equities increased demand for safe havens.

The Dow tumbled more than 260 points in its worst day in eight months, falling back under 17,000, while S&P 500 surrendered 1.6% and the Global Dow fell nearly 1.2%. The sell-off was triggered in part after Russia initiated legislation to seize foreign assets in retaliation for sanctions, especially in Italy, where some assets belonging to Putin's friends were recently seized.

Equities were also pressured by upbeat U.S. data suggesting that the Fed might raise interest rates sooner than mid-2015, reducing the excess liquidity that's helped to fuel the markets' record runs. Orders for durable goods in August�apart from a huge drop in airplanes sales following a surge in July�signaled an uptrend in planned business spending and a rise in perceived economic momentum. In addition, jobless claims rose by less than forecast last week, underpinning optimism about the labor market.

On the other hand, consumer confidence fell to a four-month low, as measured by the Bloomberg Consumer Comfort Index. And three prominent Fed officials yesterday called for patience in raising interest rates until the economy can withstand higher borrowing costs.

The dollar rallied on the upbeat data, pressuring precious metals and causing gold to fall as low as $1,208 early in the session before rebounding sharply as investors sought protection from plummeting stocks. Treasure prices rose alongside gold. The other metals closed lower, with silver dropping 1.5%, platinum 0.4%, and palladium 2.1%

At the Comex close: December gold picked up $2.40 to $1,221.90; December silver fell 26 cents to $17.38; October platinum dropped $5.20 to $1,314.20; December palladium plunged $17.30 to $802.20 an ounce.