Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.5% to close under $1,324 as upbeat U.S. data and comments from a prominent Fed official boosted the dollar and dulled demand for alternative stores of value.

U.S. consumer confidence rose to a nine-year high in September, according to the Conference Board, on optimism about the labor market and a favorable outlook for economic expansion. In a separate report, orders for durable goods were flat in August after a strong rise in July, beating expectations but still signaling struggles in manufacturing.

San Francisco Federal Reserve Bank President John Williams said today the economy is ready for higher interest rates". With two more policy meetings this year, the Fed is unlikely to raise rates before December. CME Fed watch places the odds of a November hike at just 10% while December is 56%.

The dollar strengthened behind the consumer confidence and Fed jawboning, pressuring gold and other commodities denominated in it for international trade.

The other precious metals were mixed, with silver and platinum both dropping 0.2% while palladium jumped 1.9%.

At the Comex close: December gold fell $6.70 to $1,323.70; December silver slid 4 cents to $19.12; January platinum lost $2.30 to $1,027; and December gained $13.35 to $714.40 an ounce.