Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.6% today, closing under $1,293, as the dollar rallied on ECB stimulus plans and traders took profits from yesterday's close over $1,300, the highest in five-months. The metal gained 1.2% for the week, notching its third straight weekly win.

To forestall deflation and stimulate growth, the ECB will buy 60 billion euros per month in government bonds through September 2016, and for longer if the central bank fails to meet its inflation targets. The program will flood the economy with at least a trillion new euros, coming on top of cheap loans and other monetary stimulus already in place.

In response, the euro plunged to an 11-year low today and the dollar rallied against most rivals, rising 0.8% on the ICE Dollar Index Chart. A stronger dollar tends to weigh on gold and other commodities denominated in it for international trade by making them more expensive to holders of other currencies.

The dollar's rise came despite a spate of largely disappointing U.S. economic data. The Chicago Fed's index of national activity turned negative in December; Markit's flash PMI for manufacturing dropped to a 12-month low in January; and sales of existing homes fell in 2014 for the first year in four, according to the National Association of Realtors. On the bright side, the Conference Board reported its index of leading indicators rose 0.5% in December.

The other precious metals were mixed. Silver slid 0.3% but gained 3.1% for the week. Platinum lost 1% today but gained 0.1% for the week. Palladium gained 0.3% today and 2.8% this week.

At the Comex close: February gold slipped $8.10 to $1,292.60; March silver slid 6 cents to $18.30; April platinum fell $14.80 to $1,270; March palladium gained $2.80 to $775.20 an ounce.