Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for a fifth straight session, gold added another 0.2% to close above $1,339, a four-month high, as mixed US data pressured the dollar and plunging cryptocurrencies boosted demand for alternative assets.

After hitting an 18-year high in December, homebuilder confidence fell in January, with labor shortages and rising materials costs weighing on the industry. Separately, industrial production rose in December, with capacity utilization moving toward pre-recession levels. Actual manufacturing output, however, edged up just 0.1%.

The dollar retreated 0.1% on the mixed data and reports from the Fed's Beige Book that the Republican tax plan is having muted effect on growth. A softer dollar boosts gold and other commodities by making them less expensive for users of other currencies.

Bitcoin fell below $10,000, bringing its month-long plunge to more than 50%, as regulatory concerns have put the brakes on skyrocketing cryptocurrencies. According to Bloomberg, traders who made quick fortunes in the new asset group are shifting into gold bullion as a more-stable alternative currency.

The other precious metals were mostly higher, with platinum and palladium rising 0.6% and 2%, respectively, while outlier silver slipped 0.1%.

At the Comex close: February gold added $2.10, to $1,339.20; March silver slipped 2 cents to 17.17; April platinum rose $6 to $1,010.90; and March palladium jumped $21.55 to $1,109.70 an ounce.