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Daily Gold Update
Current precious metals news

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Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


December 9: Gold falls on rate divergence

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 0.9% to close at a 10-month low under $1,162 as divergent interest rate expectations between the U.S. and Europe boosted the dollar and undermined demand for alternative stores of value. The metal closed the week 1.1% lower, marking its fifth straight week of losses.

The dollar added 0.5% against major rivals as the euro fell to a 15-month low on follow-through from yesterday's decision by the European Central Bank to extend its program of quantitative easing through the end of 2017, though at a lower monthly amount. Tantamount to printing money, QE devalues a nation's currency by increasing the supply of it in circulation.

The buck was further supported by near-certainty that the Fed will raise interest rates by a quarter-point when it meets next week. With the ECB and Bank of England holding rates at or near historic lows, the increase in U.S. rates makes the dollar more attractive to investors in search of higher yield. In turn, a rising dollar pressures gold and other commodities by making them more expensive overseas.

The other precious metals were lower for the day and mixed for the week. Silver dropped 0.8% but gained 1.3% this week. Platinum fell 3.1% today and 1.7% this week. Palladium slid 0.5% for a weekly loss of 1.3%.

At the Comex close: February gold $10.50 fell $1,161.90; March silver dropped 13 cents to $16.97; January platinum lost $28.80 to $915; and March palladium slid $4 to $735.05 an ounce.




December 8: Gold slides 0.4% on ECB stimulus

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.4% to close above $1,172 after the European Central Bank announced changes to its program of monetary easing, rallying the dollar and curtailing demand for alternative stores of value.

The ECB surprised financial markets by deciding to cut quantitative easing by 25% per month , from 80 billion to 60 billion euros, at its meeting on monetary policy. Most analysts were expecting an extension of bond-buying at current levels. Tantamount to printing money, QE typically devalues a nation's currency by increasing the supply of money in circulation and driving down bond yields.

The euro immediately spiked higher on the announcement, weakening the dollar and boosting gold prices as high as $1,181 in intraday trade.

But in his press conference after the meeting, ECB chief Mario Draghi surprised the markets a second time, saying QE will be extended throughout 2017, three months longer than expected, and could be raised back up to 80 billion euros per month at any time. "The key message," he promised, "is to show there no tapering" of monetary stimulus in the near future.

Draghi's dovish postscript reversed the early trade, driving the euro to its biggest one-day loss since Brexit. The dollar rallied in response, pressuring gold and other commodities denominated in it for international trade by making them more expensive overseas.

The other precious metals were mixed. Silver lost 1% while platinum and palladium added 0.1% and 0.9%, respectively.

At the Comex close: February gold slid $5.10 to $1,172.40; March silver lost 18 cents to $17.10; January platinum picked up 60 cents to $943.80; March palladium gained $6.40 to $739.05 an ounce.




December 7: Silver surges over $17.00, gold gains, dollar dips

Source: Dana Samuelson, American Gold Exchange

Austin -- Gold, silver and platinum all moved higher today, while the dollar fell modestly on the U.S. dollar index and against the euro. Today gold and the dollar remained within recent trading ranges, but silver was the clear winner of the day, gaining 46 cents, or 2.8% at the New York close. In doing so silver punched firmly over major short-term upside resistance at $17.00.

Gold has continued to find bidders at $1,160 in the last few trading sessions. Today those bidders became more active. Price action for gold, platinum and especially silver suggest today’s move higher was spurred by traders covering shorts ahead of next weeks Fed meeting. While gold gained 0.54%, silver was bid sharply higher in early New York trading, moving quickly from under $16.90 to as high as $17.30 on the March contract before consolidating today’s gains comfortably over $17.00 at just under $17.25.

Conversely, the yield on the U.S. 10-year treasury softened 1.8% today to 2.35% after hitting one-year highs last Thursday at 2.49%. While market makers continue to expect, the Fed will raise interest rates next week, looking forward, traders are beginning to consider that the Feds glide path towards higher rates in 2017 will be gentler than previously anticipated.

Gold was also buoyed by the prospect of growing demand for gold in 2017, driven by the World Gold Council’s announcement that a Sharia standard for gold investment has been established, which defines the Sharia guidelines for gold transactions. This opens the way for Islamic institutions to trade gold and silver much more actively than has previously been the case.

At the Comex close: February gold gained $7.40 to $1,175.50; March silver surged 46 cents to $17.27; January platinum rose $7.50 to $943.20; and March palladium slid $1.55 to $732.85 an ounce.


December 6: Gold slides on falling oil, rising dollar

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slid 0.5% to close just over $1,170 as the dollar rebounded and oil fell, diminishing demand for alternative stores of value.

The dollar gained 0.4% against major rivals, bouncing back after yesterday's 1.3% fall at the hands of the euro. A rising dollar pressures gold and other commodities by making them more expensive overseas.

The common currency had its best day against the dollar in nearly six months on Monday after plunging in the wake of Italy's referendum vote to reject constitutional reforms on Sunday. After initially announcing his resignation, Prime Minster Matteo Renzi signaled that his will stay in office until 2018. Renzi is pro-EU and his government is considered to be bullish for the euro.

Oil prices fell nearly 2% on growing skepticism that OPEC and Russia will follow through on last week's agreement to cut production. Crude had risen 15% over four sessions following the deal, which specified a 3% reduction to boost prices. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Lower prices in the wake of Donald Trump's election have driven gold demand to the highest level in five years, according to the Gold Investor Index operated by BullionVault. The number of investors starting or adding to gold holdings rose by nearly 30% in November, as people seek financial insurance against future risk.

The other precious metals also fell, with silver dropping 0.5% whiel platinum and palladium fell 0.3% and 1.6%, respectively.

At the Comex close: February gold fell $6.40 to $1,170.10; March silver lost 9 cents to $16.81; January platinum slipped $2.90 to $935.70; and March palladium slid $11.65 to $734.40 an ounce.




December 5: Gold dips 0.1% in volatile trading

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.1% to close at $1,176.50 after being whipsawed by conflicting forces. The metal first jumped as high as $1,190 early in the session on flights to safety after Italy voted to reject constitutional reforms. It then plunged as low as $1,159 on strong U.S. data and hawkish comments from the Fed, before bouncing back as the dollar weakened on a rebound in the euro.

On Sunday, Italy voted against constitutional reforms advocated by Prime Minister Matteo Renzi, prompting his resignation. Though widely expected, the decision roiled the Italian banking sector and triggered fears of financial contagion in the Eurozone, boosting demand for safe-haven assets.

Gold was then pressured by statements from Chicago Federal Reserve President Charles Evans, who said that he expects additional rate increases in the near future. "We are on the cusp of a period of rising interest rates," Evans told reporters. Rising rates typically pressure gold by boosting the dollar, which makes commodities more expensive overseas because they are denominated in the currency for international trade.

In addition, new data from the ISM showed U.S. services strengthened in November to the highest level in a year, furthering the case for higher rates in 2017.

After sliding from intraday highs to intraday lows on the ISM data and Evans comments, gold then bounced back to close the session nearly flat as the dollar slid to losses of 1.3% against major rivals. The euro led the way against the buck, rebounding from an 18-month low for its best day in six months after Renzi signaled that his pro-euro government will continue until the next general election in 2018, allaying worries about contagion.

The other precious metals finished higher, with silver gaining 0.4% while platinum and palladium added 0.6% and 0.1%, respectively.

At the Comex close: February gold edged down $1.30 to $1,176.50; March silver gained 7 cents to $16.90; January platinum for delivery climbed $5.90 to $938.60; and March palladium added 55 cents to $746.05 an ounce.




December 2: Gold gains 0.8% on soft jobs report

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.8% to close near $1,178 as lackluster jobs data pressured the dollar, boosting demand for alternative stores of value. The metal closed the week nearly flat, dipping less than 0.1%.

U.S. nonfarm payrolls added 178,000 jobs in November, well under the 200,000 forecast, while totals for the prior two months were revised lower by 2,000. Average hourly earnings fell 0.1% for the first decline in nearly two years. The unemployment rate dropped to 4.6%, the lowest since 2007, but the decline was attributed to a contraction of 226,000 in the labor force, pushing participation to its lowest level since June.

The dollar retreated 0.3% against major rivals, supporting gold and other commodities, as traders questioned whether the soft jobs data will slow the pace of rate hikes in 2017. While a quarter-point rise this month as all but certain, the number of hikes next year will depend upon the ongoing strength of the economy.

Treasury yields also rolled back, as falling wage growth helped to allay concerns about rising near-term inflation.

The other precious metals were mostly higher. Silver jumped 2% for the day and 2.3% for the week. Platinum gained 2.4% to close the week 2.7% higher. Palladium fell 0.8% but managed a weekly rise of 0.6%.

At the Comex close: February gold gained $8.40 to $1,177.80; March silver added 33 cents, to $16.83; January platinum picked up $21.40 to $932.70; and March palladium dropped $6.20 to $745.50 an ounce.




December 1: Gold dips as investors seek yield

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.1% to close under $1,170 as robust U.S. economic data and rising oil prices pushed investors into higher-yielding assets.

Factory output rose in November, according to the ISM manufacturing index, signaling new life in the long-moribund sector. Following yesterday's upbeat private payrolls report and solid data on consumer spending and personal income gains, the report suggests improving momentum in the economy to close the year.

Oil prices jumped another 1.7%, adding to yesterday's surge of nearly 9%, as traders digest OPEC's agreement to cut production by 3%.

Treasury yields climbed again, with the benchmark 10-year note hitting a 17-month high, as bond market price-in expectations for significantly higher inflation. Rising oil prices are seen as ultimately creating upward pressure on consumer prices, and Donald Trump's promises to rebuild infrastructure while slashing taxes and increasing tariffs on imported goods are also viewed as highly inflationary.

In the short term, rising inflation-expectations may pressure gold by boosting the dollar as the Fed could raise interest rates faster than previous thought, attracting forex investment in search of higher yield. But in the longer term, rising inflation is typically bullish for gold as investors seek hedges to protect purchasing power.

The other precious metals were mixed, with silver and platinum adding 0.1% and 0.2% while palladium dropped 2.7%.

At the Comex close: February gold fell $4.50 to $1,169.40; March silver picked up 2 cents to $16.50; January platinum added $1.40 to $911.13; and March palladium fell $20.95 to $751.70 an ounce.




November 30: Gold drops 1.4% as dollar rallies

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dropped 1.4% to close under $1,174 as the dollar rallied on strong U.S. economic data. The metal finished November down 7.9% for its weakest monthly performance since June 2013.

Private employers added 216,000 jobs in November, according to ADP, handily beating forecasts and raising optimism that the more-authoritative U.S. nonfarm payrolls report, due tomorrow, will also come in stronger than expected.

In a separate report, consumer spending, personal income, and inflation rose in October according to the Commerce Department, signaling solid momentum in the economy. In addition, the Chicago Fed region's PMI report jumped to a two-year high as the factory sector, a persistent weakness in the post-recession economy, is beginning to find its footing.

The dollar rallied another 0.5% against major rivals as the breadth of strong data all but cemented the likelihood of a rate hike from the Fed in December. A rising dollar pressured gold and other commodities denominated in it for international trade by making them more expensive overseas.

OPEC and other large oil producers agreed to cut production by 3%, sending crude prices 8% higher to nearly $50 per barrel. While gold typically trades in sympathy with rising oil as a hedge against long-term inflation, the two commodities diverged today as traders speculated that rising energy prices will trigger more aggressive rate hikes from the Fed, further boosting the dollar and weighing on gold in the short term.

The other precious metals were mostly lower for the day and month. Silver dropped 1.5% today and 7.6% in November. Platinum slid 1.1% for a monthly loss of 7%. Outlier palladium, closely tied to the auto industry, added 0.6% today and a whopping 24% this month.

At the Comex close: February gold fell $16.90 to $1,173.90; March silver dropped 25 cents to $16.48; January platinum lost $10.30 to $911; and march palladium added $4.90 to $770.15 an ounce.




November 29: Gold dips on upbeat data, plunging oil

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.3% to close under $1,191 as upbeat U.S. economic data and plunging oil prices reduced demand for alternative assets.

The Commerce Department reported that GDP rose 3.2% in the third quarter, the most since Q2 2014, behind strong spending and exports. Comprising roughly 70% of the economy, consumer spending rose 2.8% while business investment and exports both jumped 10.1%. In a separate report, consumer confidence jumped in November to pre-recessions levels.

Oil tumble 4% to a two-week low near $45 per barrel as doubts mounted about whether OPEC will agree to cut production when it meets in Vienna this week. Prices picked up yesterday after Iran and Iraq said they would hold output steady, but optimism fell apart today over conflicts between those nations and Saudi Arabia over the implementation of output reductions. Gold often trades in sympathy with oil as a hedge against energy inflation.

The other precious metals were mixed, with silver and palladium adding 0.4% and 0.7%, respectively, while platinum dropped 0.2%.

At the Comex close: February gold dropped $3 to $1,190.80; March silver gained 7 cents to $16.74; January platinum dipped $2.50 to $920.80; and March palladium added $5.15 to $763.15 an ounce.




November 28: Gold rebounds 1.1% as oil jumps

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold rebounded 1.1% to close near $1,191 as a sharp spike in oil prices and a roll-back in equities and the dollar boosted demand for alternative stores of value.

Oil surge as much as 2%, rising off early-session losses, as traders swung from pessimism to optimism about the chances for an OPEC agreement to curb production after members said they would salvage the deal.

Crude had fallen around 4% on Friday, pulling gold 0.9% lower, when Saudi Arabia said it would not attend meetings with Russia until OPEC decided on production cuts. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Stocks pulled back from the Trump-inspired rally that pushed the Dow and S&P 500 to record highs last week. Campaign promises of deregulation, tax cuts, and infrastructure spending have triggered speculation that corporate profits will rise during a Trump presidency.

The dollar declined slightly against a basket of rivals and lost around 1% against the safe-haven yen as traders took a pause from risk appetite. Treasury prices also rose alongside gold and the yen on safe-haven inflows.

Physical gold demand jumped in China, the world's largest gold consumer, pushing premiums to a three-year high, on expectations that the government will limit gold importers in order to control recent outflows of the yuan.

The other precious metals also rose, with silver adding 0.7% while platinum and palladium picked up 1.7% and 2%, respectively.

At the Comex close: December gold gained $12.40 to $1,190.80; March silver added 12 cents, to $16.68; January platinum climbed $15 to $923.30; and March palladium rose $15.10 to $758 an ounce.




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