Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.7% to close under $1,277 as optimism about US tax reform rallied equities to new records, reducing demand for safe-haven assets. The metal still managed a gain of 0.5% for November.

Investors cheered the prospect of lower taxes as the Senate tax plan gathered steam today, with fence-sitter John McCain finally saying he would support the bill. Leadership must win over a handful of holdouts to ensure the requisite 50 votes.

US equities surged on the prospect that the Senate could pass its version of the legislation this week. The Dow gained 1.4% to push above 24,000 for the first time and the S&P 500 added 0.8%, reaching as high as 2,655 in intraday trading.

Meanwhile, safe-haven Treasury notes fell alongside gold as investors jumped headlong into risk assets, speculating that sharply lower personal and corporate taxes will boost growth and share prices.

The dollar fell 0.3% against major rivals, helping to stem gold's losses, after the UK pound rallied sharply on news that Brexit negotiations are moving forward. The buck lost 1.7% for November, posting its biggest monthly loss since July's 2.9% retreat.

The other precious metals were mixed for the day and month. Silver dropped 0.5% today for a 1.4% loss in November. Platinum ticked up 0.1% for a monthly gain of 2.6%. Palladium fell 0.5% on the day but added 2.7% for the month.

At the Comex close: February gold slid $9.50 to $1,276.70; March silver dropped 9 cents to $16.47; January platinum added $1.30, to $942.50; and March palladium lost $5.05 to $1,003.55 an ounce.