Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold tipped up ten cents to close at $1,229.40 as weaker home prices and durable goods orders pressured the dollar, boosting precious metals and other commodities denominated in the currency for international trade.

Orders for big-ticket items from U.S. factories fell for the second straight month as a slowdown in the global economy prompted businesses to refrain from investing in expensive equipment. Markets in Europe are especially soft, with stubbornly high unemployment and shrinking growth weighing on business confidence.

U.S. home prices rose at a slower pace in August, impeded by tight borrowing conditions and flat wage growth. Following yesterday's report on fewer pending home sales, the lower price-data raises questions about momentum in the crucial housing recovery.

The dollar fell against most rivals behind the weaker data as traders await tomorrow's policy statement following the end of the FOMC's October meeting. The dollar's losses were staunched by the release of Conference Board data showing consumer confidence hit a seven-year high this month.

Rising market volatility, Eurozone stagnation, and violence in the Middle East are causing U.S. money markets to wager that the Fed will delay any tightening of interest rates until late 2015 at the earliest. Gold bullion coin sales by the U.S. Mint rose to a ten-month high in October for the same reasons.

The other precious metals outpaced gold gains today. Silver added nearly 0.5% while platinum and palladium jumped 1% and 1.3%, respectively.

At the Comex close: December added 10 cents to $1,229.40; December silver picked up 6 cents to $17.23; January platinum gained $11.80 to $1,266.30; and while December palladium rose $6.20 to $793.35 an ounce.