Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Washington— Gold slid 0.6% as optimism that the U.S. will find a way out of the debt-ceiling impasse reduced its safe-haven appeal. U.S. equities rallied, with the S&P 500 almost erasing its losses for the week after House Speaker John Boehner stated that he will not allow intransigence in Congress to push the government into defaulting on its debt. According to a U.S. Treasury report issued yesterday, default could result in a financial crisis similar to 2008 and plunge the economy back into recession.

The dollar gained against most rivals, pressuring gold and other commodities that are denominated in dollars internationally. Gold ended the week down 2.2%. Silver slipped 0.2% for a weekly loss of 0.4%. Platinum gained 1.1% today on potential disruptions in supply because of South African water restrictions, but still lost 2.2% on the week. Palladium added 0.3% for the day but lost 4.1% for the week.

At the Comex close: December gold slid $7.70 to $1,309.90; December silver dropped 3 cents to $21.75; January platinum gained $14.70 to $1,388 December palladium added $1.75, to $701.95 an ounce.