Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.4% to close above $1,303 on follow-through from yesterday's statement from the Federal Reserve hinting that a rate increase in December is likely. But it picked up around $5 from yesterday's after-hours slide to reclaim the psychologically-important $1,300 level.

The Fed's November statement, released after the Comex close yesterday, said the case for a higher rates "has continued to strengthen," which traders took to mean that the December meeting, like last year, will result in a quarter-point rise.

After closing at a four-week high above $1,308 in Wednesday's session, the metal slid back under $1,300 in electronic trade yesterday afternoon after the Fed's statement was released. Today's nominal loss from yesterday's close is actually a rise to reclaim that threshold, driven by safe-haven demand ahead of next Tuesday's U.S. presidential election.

Global stocks slumped again, with the S&P 500 dropping 0.5% and the Global Dow 0.4%, as the uncertainty over outcome of the election continues to weigh on risk appetite.

Equity markets had largely priced-in Clinton win, given her persistent lead in polling. Trump's unexpected gains over the past few days are causing traders to reposition themselves for the possibility of an upset�of Clinton and the status quo she represents to Wall Street.

The other precious metals also finished lower, with silver dropping 1.5% while platinum and palladium fell 0.7% and 2.7%, respectively.

At the Comex close: December gold slipped $4.90 to $1,303.30; December silver lost 28 cents, to $18.42; January platinum dropped $7.40 to $994.40; and December palladium shed $16.90, to $617.60 an ounce.