Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.4% to close above $1,349 after the dollar ticked up and traders took profits from the metal's three-day rise to a two-month high.

The dollar rose 0.2% against major rivals, boosted by expectations that the European Central Bank will extend quantitative easing when it meets on Thursday. The bond-buying program has already exceeded $1 trillion but growth and inflation both remain well-below targets. Tantamount to printing money, QE devalues the euro and spurs forex investment other currencies like the dollar and yen.

Gold jumped 3.6% to $1,354 over the previous three sessions as soft U.S. economic reports on manufacturing, payrolls, and services convinced traders that the Fed will refrain from raising interest rates until December at the earliest. CME FedWatch sees only a 15% chance of a September hike, with December's odds at slightly better than 50/50.

The other precious metals fell harder than gold, with silver losing 1.4% while platinum and palladium dropping 0.9% and 1.8%, respectively.

At the Comex close: December gold slipped $4.80 to $1,349.20; December silver dropped 29 cents to $19.85; October platinum lost $9.90 to $1,092.80; and December palladium shed $12.30 to $688.35 an ounce.