Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold finished nearly flat, slipping 50 cents to $1,196.60 after rising as high as $1,200 in choppy trade ahead of the Thanksgiving holiday.

The metal was supported another round of soft data suggesting that the pace of U.S. economic growth is slowing. U.S. consumer spending rose only slightly last month, ticking up 0.2% after no rise in September, and business spending fell for a second month, according to the Commerce Department. First-time jobless claims rose sharply to 313,000, an 11-week high.

In another report, durable goods orders rose by 0.4% but orders for core capital goods�durable goods excluding defense spending�fell 1.3% in October, held back by slower growth in China, Europe, and Japan. Orders for core capital goods are considered a better reflection of broad-based economic activity.

Weighing on gold was yesterday's upward revision of U.S. GDP growth to 3.9% from 3.5%, indicating more momentum in the economy than expected. Faster growth could lead the Fed to raise interest rates sooner if it translates into higher inflation and bigger gains in employment and wages.

Platinum and palladium picked up 0.3% and 0.8%, respectively, while silver finished unchanged.

At the Comex close: December gold slipped 50 cents to $1,196.60; December silver was flat at $16.55; January platinum picked up $3.90 to $1,228.40; and December palladium rose $6 to $801.60 an ounce.