Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slipped 0.4% to close at a five-month low under $1,242 as the dollar and equities rallied on rising inflation and expectations that the Fed will raise interest rates when it meets tomorrow.

US wholesale inflation rose 0.4% in November, pushing the 12-month rate to 3.1%, the highest in six years. While much of the rise came from higher energy prices, the so-called core PPI stripping out food and energy still rose at 2.4%, a three-year high. Meanwhile, consumer inflation in November beat expectations in Sweden and Japan, and rose to a six-year high in the UK.

The dollar added 0.2% against major rivals, boosted by speculation that the Fed will hike rates by a quarter-point at its December meeting for the third straight year. A stronger dollar tends to weigh on gold and other commodities priced in it for global trade by making them more expensive ion other currencies.

Risk appetite also pressured gold as the Dow climber 0.6% to a new record, led by financials ahead of tomorrow's Fed meeting. Speculative bitcoin mania is also pulling retail investors away from traditional safe-haven assets.

The other precious metals were mixed, with silver and platinum dropping 0.7% and 1.9%, respectively, while palladium picked up 0.4%.

At the Comex close: February gold slipped $5.20 to $1,241.70; March silver dropped 12 cents to $15.67; January platinum fell $17.10 to $875.70; March palladium added $3.60, to $1,002.35 an ounce.