Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.7% to close under $1,794 as upbeat data lifted the dollar, prompting traders to take profit from the metal's 2.2% rally over the previous five sessions.

US consumer confidence improved in October, according to the Conference Board's index, after declining for three straight months. Concerns about the Delta variant and sharply higher prices have softened while optimism about the labor market and rising wages has increased.

The housing market remains a bright spot in the recovery, with Case-Shiller home-price index rising nearly 20% from a year ago in August, according to data released today. Rising home values contribute to a wealth-effect that fuels consumer spending.

The dollar rose 0.2% against major rivals as trades speculated that an improving economy will encourage the Fed to begin tapering monetary stimulus when it meets next week. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies, limiting overseas demand.

After flooding some $3 trillion into the economy, the Fed is likely to announce reductions in its $120 billion per month bond-buying program, starting in November or December. Gold pushed to six-week highs above $1,800 recently on expectations that the sharply higher inflation it triggered by will continue well into next year.

The other precious metals were also lower, with silver dropping 2.1% while platinum and palladium retreated by 2.9% and 2.1%, respectively.

At The Comex close: December gold slipped $13.40 to $1,793.40; December silver dropped 50 cents to $24.09; January platinum fell $30.90 to $1,032.90; and December palladium lost $43.40 to $2,004.80 an ounce.