Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8%, closing above $1,234 for a weekly gain of 0.5%, after falling U.S. wholesale inflation lowered the pressure on the Fed to reduce monetary stimulus at next week�s meeting. Producer prices fell for the third straight month in November behind lower costs for autos, energy, and materials used in early-stage manufacturing. Traders viewed the falling inflation figures as giving the FOMC plenty of room to maintain quantitative easing at current levels. Tantamount to printing money, QE promotes inflation by flooding the economy with liquidity and devaluing the dollar, which increases demand for gold as an alternative store of value.

The other precious metals were mixed. Silver added 0.8% today and 0.4% for the week. Platinum dipped 0.1% or the day but gained 0.5% on the week, while sister metal palladium fell 0.6% today and lost 2.7% this week.

At the Comex close: February gold gained $9.70 to $1,234.60; March silver rose 15 cents to $19.60; January platinum dipped $1.50 to $1,362.90; March palladium dropped $4.05 to $716.20 an ounce.