Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold ticked up 0.1% in choppy trade, closing above $1,076, as the dollar softened on a stronger euro and weaker U.S. wholesale inventories, bidding up alternative stores of value.

The dollar fell more than 1% as the euro rose to a one-month high and oil extended its losing streak to four sessions, causing traders continuing shifting out of commodity-linked currencies. Trade in the euro has been gathering momentum since the ECB announced last Thursday that it would extend but not increase the amount of its easing program. Tantamount to printing money, QE weakens a currency by increasing its supply in circulation.

The dollar came under additional pressure after the Commerce Department reported wholesale inventories fell in October after being revised lower in September. With demand for factory goods and exports falling in response to weak overseas growth and the strong dollar, the data was seen as further evidence that U.S. GDP will come in lower than forecast this quarter.

The other precious metals also gained, with silver adding 0.5% while platinum and palladium gained 2.3% and 0.8%, respectively.

At the Comex close: February gold ticked up $1.20 to $1,076.50; March silver added 7 cents, to $14.19; January platinum jumped $19.30 to $865.80; and March palladium picked up $4.45, to $552.35 an ounce.