Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close under $1,461 as a raft of upbeat US economic data rallied stocks and the dollar, undercutting demand for safe havens.

Consumer spending rose in October for the eighth straight month, signaling momentum in this crucial sector entering the holiday season. While consumer confidence has fallen for four months, Americans continue to buy things, which has carried an otherwise tepid economy. Household spending constitutes around 70% of GDP.

Durable goods orders rose 0.6% in October behind a strong uptick in defense spending on fighter planes and ships. Orders for non-military goods were nearly flat.

The Fed's Beige Book said the economy expanded "modestly" across the Fed regions in the period from October through the middle of this month. The anecdotal summary marked a mild improvement over the previous period, which was characterized as growing at a "slight to moderate pace."

The Commerce Department upgraded its growth estimate for the third quarter to 2.1% from 1.9%, citing slightly better business investment than previously measured.

Stocks rallied on the improved data, with all three main US indexes reaching new records ahead of the Thanksgiving holiday closures. The Dow added 0.2% while the S&P 500 and Nasdaq rose 0.4% and 0.6%, respectively.

The dollar also gained ground, adding 0.1% against major rivals. A strong dollar pressures gold and other commodities by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and platinum dropping 0.7% and 2.1% while outlier palladium rose 1.3%.

At the Comex close: February gold fell $6.90 to $1,4560.50; December silver lost 12 cents to $16.92; January platinum dropped $16.30 to $892; and March palladium rose $23.90 to $1,805.90 to an ounce.