Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.3% to close near $1,236 as tumbling global equities and a falling dollar drove demand for safe-haven assets. The metal rose 0.6% this week for its fourth straight weekly win.

Anxiety over weak growth in China caused stock markets worldwide to sell off, pushing the MSCI global index to its fifth straight weekly loss for the first time since 2013. Contagion from China's slowing economy infected European and Asian stocks after the Shanghai Composite index fell another 2.3%, pushing its losses to more than 20% this year.

Disappointing corporate earnings in the US, especially among Tech shares, added to risk-off sentiment, knocking the Dow and the S&P 500 down 1.3% and 2%, respectively, while the tech-heavy Nasdaq plunged 2.5%. Reports that consumer sentiment slipped in October because of weak wage growth also pressured stocks.

Safe-haven currencies like the yen and Swiss franc rallied at the expense of the dollar, which fell as much as 0.6% before bouncing back to losses of 0.3%. The Chinese yuan fell to the lowest level in almost three years, suggesting that China's weakness is affecting foreign exchange markets, too.

Two Federal Reserve presidents suggested today that another interest rate hike in December is not a done deal. Citing a slower economy and falling stock markets, Loretta Mester of the Cleveland Fed said the FOMC will reassess whether to hike gain based on economic conditions. Robert Kaplan of the Dallas Fed echoed Mester, saying the pace of further hikes is not "rigid or predetermined." According to CME FedWatch, the odds of a December hike are now 67%, down from 78% one week ago.

The other precious metals were mixed for the day and higher for the week. Silver gained 0.5% today for a weekly gain of 0.3%. Platinum added 0.3% for the day and week. Palladium slipped 0.2% today but gained 1.5% this week.

At the Comex close: December gold gained $3.40 to $1,235.80; December silver rose 7 cents to $14.70; January platinum picked up $2.50 to $834.40; and December palladium dipped $1.70 to $1,085.90 an ounce.