Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.2% to close under $1,220 after unexpectedly strong housing data stoked risk appetite and boosted the dollar, reducing safe-haven bids.

Sales of new homes jumped 18% in August to the highest level since June 2010, the Commerce Department reported today. Although the sample size is small and the data subject to revision, the report helps to allay fears that the crucial recovery in the housing sector is faltering. Sales of existing U.S. homes fell nearly 2% in August, the first monthly decrease since March, and new housing starts also dropped last month.

The dollar rallied to a four-year high against a basket of rivals on the home-sales data, pressuring gold and other commodities denominated in it for international trade by making them more expensivr for foreign buyers. The Dow jumped nearly 1% and the S&P 500 picked up 0.8%.

The other precious metals were mostly lower, with silver sliding 0.4% and platinum dropping more than 1% to a nine-month low. Palladium bucked the trend by adding 0.5%.

At the Comex close: December gold $2.50 to $1,219.50; December silver slid 7 cents to $17.64; October platinum dropped $13.30 to $1,319.40; and December palladium added $4.25, to $819.50 an ounce.