Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.5% to close just over $1,170 as the dollar rebounded and oil fell, diminishing demand for alternative stores of value.

The dollar gained 0.4% against major rivals, bouncing back after yesterday's 1.3% fall at the hands of the euro. A rising dollar pressures gold and other commodities by making them more expensive overseas.

The common currency had its best day against the dollar in nearly six months on Monday after plunging in the wake of Italy's referendum vote to reject constitutional reforms on Sunday. After initially announcing his resignation, Prime Minster Matteo Renzi signaled that his will stay in office until 2018. Renzi is pro-EU and his government is considered to be bullish for the euro.

Oil prices fell nearly 2% on growing skepticism that OPEC and Russia will follow through on last week's agreement to cut production. Crude had risen 15% over four sessions following the deal, which specified a 3% reduction to boost prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Lower prices in the wake of Donald Trump's election have driven gold demand to the highest level in five years, according to the Gold Investor Index operated by BullionVault. The number of investors starting or adding to gold holdings rose by nearly 30% in November, as people seek financial insurance against future risk.

The other precious metals also fell, with silver dropping 0.5% whiel platinum and palladium fell 0.3% and 1.6%, respectively.

At the Comex close: February gold fell $6.40 to $1,170.10; March silver lost 9 cents to $16.81; January platinum slipped $2.90 to $935.70; and March palladium slid $11.65 to $734.40 an ounce.