Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.3% to close just under $1,163 after China announced another rate cut, boosting the dollar and crimping demand for alternative stores of value. The metal finished the week 1.3% lower.

Continuing its most aggressive program of monetary easing since the financial crisis in 2008, China's central bank lowered interest rates for the sixth time in the past year and reduced again the amount banks are required to hold on reserve. With imports dropping for eleven straight months and wholesale prices stuck in deflation for three years, growth in China fell to the lowest level in 25 years last quarter.

The PBOC's latest easing move comes one day after the ECB telegraphed the likely launch of deeper quantitative easing in December. The Bank of Japan is also expected to ease again when it meets next week. Possessing the world's third-largest economy, Japan continues to struggle with deflation and weak growth after factory output and core inflation fell again in September.

With the other major central banks easing and the Fed still pondering a rate hike, the dollar rose another 0.8% against major rivals, extending its rally to 3% this week. A stronger dollar pressures gold and other commodities denominated in it for international trade.

The other precious metals were mixed on the day but lower for the week. Silver dipped less than 0.1% today to end with a 1.8% weekly loss. Platinum dropped 1.1% today and 2.2% this week. Outlier palladium gained 1.2% today but fell 0.8% this week.

At the Comex close: December gold slipped $3.30 to $1,162.80; December silver dipped one cent to $15.83; January platinum dropped $11.20 to $1,001.70; and December palladium gained $8.25 to $693.85 an ounce.