Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.5% to close under $1,276, giving back half of yesterday's advance, as the dollar crept higher and oil dropped from a two-year peak, dulling appetite for alternative stores of value.

The buck added 0.2% against major rivals and rose to a four-month high versus the euro, pressuring gold and other commodities denominated in it for global trade by making them more expensive in other currencies. Despite upbeat Eurozone data, the euro has been under pressure since the ECB said last month that quantitative easing will be extended until late 2018.

Oil retreated 0.6% on profit-taking from yesterday's 3.1% surge to a two-year high as fears about the Saudi shake-up began to recede. Over the weekend, the new crown prince detained some 60 high-ranking oil officials and members of the royal family on charges of corruption, rattling oil markets.

Meanwhile, OPEC is forecasting healthy growth in global oil demand in coming years, which is expected to underpin higher prices. According to its World Oil Outlook to 2040 report, released today, annual demand will rise by 1.2 million barrels per day through 2022. Rising oil prices are typically bullish for gold, which often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals also fell, with silver losing 1.7% while platinum and palladium lost 1% and 0.1%, respectively.

At the Comex close: December gold slid $5.80 to $1,275.80; December silver lost 30 cents to $16.94; January platinum dropped $9.70 to $925.30; and December palladium dipped $1 to $994.10 an ounce.