Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising 0.6% to close above $1,281, gold gained for a third session as US stocks resumed their slide and the dollar fell, spurring demand for alternative assets. It was the metal's first finish above $1,280 since mid-June.

One day after surging 1,000 points, the Dow returned to its losing ways, surrendering 2% as slowing global growth, lingering trade conflicts, and political uncertainty over the partial US government shutdown caused investors to shed risk. Wall Street is mired in its worst December since 1931, the bottom of the Great Depression.

Also damping risk appetite, the Conference Board reported consumer confidence plummeted more than eight points in December for the biggest one-month drop since mid-2015. Higher interest rates and trade tensions with China topped the list of worries.

The dollar lost 0.6% against major rivals as forex traders shifted into safe-haven currencies like the yen and Swiss franc. The euro also strengthened after yesterday's rate hike in the Swedish kroner suggested tighter monetary policy in the offing for the Eurozone. A weaker dollar supports gold and other commodities priced in it for global trade by making them less expensive overseas.

The other precious metals were mostly higher, with silver and palladium climbing 1.2% and 0.7%, respectively, while platinum slid 0.4%.

At the Comex close: February gold rose $8.10 to $1,281.10; March silver jumped 19 cents to $15.31; April platinum slid $3.30 to $801.40; and March palladium climbed $8.60 to $1,194.50 an ounce.