Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold jumped nearly 1% to close just under $1,245, its highest finish in nearly five weeks, as a spate of weak U.S. economic data spurred another sharp sell-off in equities and the dollar, boosting demand for safe havens.

Retail sales dropped more than expected in September, signaling a broad pullback by consumers in the wake of stagnant wage growth. Manufacturing and general business conditions in the bellwether Empire State Fed region plunged in October, leading traders to expect another weak national ISM factory report, due out in two weeks. And wholesale prices fell in September for the first time in a year, underscoring the challenges facing the Fed as it struggles to combat deflation by stimulating inflation.

The softening U.S. data combined with ongoing weakness in Europe and Asia to drive investors toward safety and away from risk assets. Benchmark 10-year Treasury yields fell below 2% for the first time in 16 months as prices continued to rally. The Dow and Global Dow both dropped 1%. The dollar plunged against a basket of rivals, losing nearly 1% on sentiment that falling inflation and a slowing economy will prevent the Fed from raising interest rates until late 2015 at the earliest.

The other metals were mixed. Silver added 0.4% while platinum and palladium, more directly tied to global industry, lost 0.9% and a whopping 3.9%, respectively.

At the Comex close: December climbed $10.50 to $1,244.80; December silver added 6 cents to $17.46; January platinum lost $11.40 to $1,260.90; and December palladium plunged $30.85 to $764.25 an ounce.