Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— After climbing to $1,291.50 in early trade, gold slid to close under $1,275 for a loss of 0.4% after signs of a prospective Clinton victory in the U.S. presidential election spurred a risk-rally on Wall Street, cutting into demand for safe-haven assets.

With pre-election polling and early voter turn-out estimates favoring Democrats, global equities rallied for a second day. The Dow and Global Dow both added 0.5% while NASDAQ picked up 0.7%. The prospect of a Trump presidency has been widely viewed as destabilizing by stock markets, mainly because the consequences of his policies on trade and immigration are uncertain, and markets tend to prefer certainty.

The dollar also received a lift, gaining 0.2% against a basket of major rivals and more versus safe-haven currencies like the yen and Swiss franc, as risk-off sentiment receded. A Clinton victory is perceived as more likely to support the status quo in monetary policy, keeping the Fed on track for a December rate hike.

Global investment demand for gold soared 44% to nearly 336 metric tonnes in the third quarter, according to research from the World Gold Council. The key driver was rising geopolitical risk stemming from Brexit, the U.S. presidential election, and next year's elections in France and Germany. Overall demand was down 10%, however, because of a 21% decline in jewelry.

The other precious metals finished higher, with silver gaining 1.1% while platinum and palladium rose 0.7% and 1.4%, respectively.

At the Comex close: December gold dropped $4.90 to $1,274.50; December silver gained 21 cents to $18.36; January platinum added $7.20, to $1,008.60; and December palladium climbed $9.10 to $665.50 an ounce.