Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.2% to close just under $1,297 as upbeat housing data and muted U.S. inflation boosted risk appetite. Reports that Russia's Putin will meet with the Ukrainian president and EU officials next week to defuse tensions also helped to diminish safe-haven demand.

Housing starts jumped to an eight-month high in July, indicating a solid rebound after a poor first half of the year. In addition, consumer prices rose at the slowest pace in five months, edging up just 0.1% as higher food costs were offset by lower energy costs.

Equity markets rallied on the improving data, with the Dow and S&P 500 gaining 0.5%, while Treasury prices fell alongside gold. The dollar jumped to an 11-month high, further pressuring precious metals and other commodities denominated in dollars for international trade. Silver lost 1% while platinum and palladium fell 0.5% and 1.6%, respectively.

At the Comex close: December gold slipped $2.60 to $1,296.70; September silver dropped 20 cents to $19.41; October platinum fell $6.70 to $1,439.50; and September palladium shed $14.10 to $880.80 an ounce.