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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.


October 31: Gold loses 2.3% on BOJ stimulus

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold lost another 2.3%, closing under $1,172, as the dollar surged in response to the Bank of Japan's surprising decision to expand monetary stimulus. The metal finished the week down 5.3%, its biggest weekly drop since June 2013.

In a move that shocked financial markets, the BOJ expanded quantitative easing, its program of buying government bonds to increase the money supply and combat deflation in its floundering economy. The dollar rallied nearly 0.9% against major rivals, surging to a seven-year high against the yen. A rising dollar pressures gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

Gold was already under pressure this week after U.S. economic growth came in stronger than expected in the third quarter at 3.5%, and the FOMC issued a slightly more hawkish policy statement, suggesting that interest rates could rise sooner than anticipated if data warrant. Higher rates strengthen the dollar.

Equity markets jumped higher after the BOJ announcement, with the Dow and Global Dow both adding 1.2%. The other precious metals were mostly lower. Silver added a loss of 2.1% to yesterday's 4.9% plunge close the week down 6.2%. Platinum fell 0.9% today and 1.2% this week. Palladium was the outlier, gaining nearly 1.5% today to finish the week 1.4% higher.

At the Comex close: December gold lost $27 to $1,171.60; December silver dropped 31 cents to $16.11; January platinum fell $10.70 to $1,235; and December palladium gained $11.10 to $791.80 an ounce.




October 30: Gold tumbles 2.2% to three-week low

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold tumbled 2.2% to close at a three-week low under $1,199 after better-than-forecast GDP boosted the dollar and reduced demand for alternative stores of value. Silver plunged nearly 5% to its lowest level in more than four years.

The U.S. economy grew at a 3.5% annual pace in the third quarter, according to the Commerce Department, led by rising military spending and a narrowing trade deficit. Following growth of 4.6% in the second quarter, the data indicates momentum in the U.S. economy. However, weaker business investment, consumer spending, and slowness in housing market indicate growth may slip in the fourth quarter.

Following yesterday's optimistic Fed policy statement, the GDP data added to speculation that the central bank may lean toward raising interest sooner than mid-2015, as many economists predict. The dollar surged to a three-week high, pressuring gold and other commodities denominated in the currency for international trade.

Platinum and palladium also fell hard, losing 1.8% and 2.5%, respectively.

At the Comex close: December gold tumbled $26.30 to $1,198.60; December silver plunged 84 cents to $16.42; January platinum dumped $23.30 to $1,245.90; and December palladium shed $20 to $780.70 an ounce.




October 29: Gold slips, extends losses after Fed

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped $4.50 to close just under $1,225 and then dropped another $8 in electronic trade after the Fed sounded upbeat on the economy at the conclusion of its October meeting.

As expected, the FOMC's post-meeting policy statement announced the end of quantitative easing, which had been winding down by $10 billion per month for half-a-year. Tantamount to printing money, QE has swelled the Fed's balance sheet to around $4.5 trillion since 2008, devaluing the dollar and supporting higher prices for commodities denominated in it for international trade.

The Fed was more optimistic about the economy than in the past, saying underutilization in the labor markets is "gradually diminishing" and global economic weakness is unlikely to damage the U.S. recovery. While the policy statement maintained the long-held position that interest rates will remain near zero for a "considerable time," it added the caveat that rates could rise sooner if data warrant. The dollar surged against most major rivals after the Fed statement, further pressuring gold.

Russia added more than 37 tons of gold to its reserves in September, according to the IMF, giving it nearly 1,150 tons, the fifth most in the world. Valued at $1.5 billion, the increase was the biggest since the nation's financial crisis in 1998. Russia's official gold reserves have nearly tripled since 2005 and now exceed those of Switzerland and China.

At the Comex close: December gold slipped $4.50 to $1,224.90; December silver lost 4 cents to $17.26, and then another four cents after hours; January platinum gained $2.90 to $1,269.20 before falling back $2 after hours; and December palladium rose $7.35 to $800.70 an ounce, and then surrendered $4 after the FOMC statement.




October 28: Gold tips up on softer data, dollar

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.




October 27: Gold edges down ahead of Fed

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold edged down 0.2% to close just over $1,229 in thin trade as the markets await direction from this month's FOMC meeting, which begins tomorrow. Losses were limited by rising physical demand in Asia.

When the meeting concludes on Wednesday, the Fed is expected to announce the end of quantitative easing, the bond-buying program that has ballooned its balance sheet to around $4.5 trillion since 2008. Tantamount to printing money, QE has supported higher prices for gold and equities by flooding the markets with liquidity. The Fed is also expected to reassure the markets that interest rates will remain near zero for "a considerable time" after QE ends because of persistent weakness in the global economy and too-low inflation here at home.

China imported nearly 62 tons of gold from Hong Kong last month, the most since April, ahead of its National Day celebration. Demand is also rising in India, the world's second-largest gold buyer, in anticipation of the upcoming wedding season and Hindu Diwali festival. Indian trade organizations expect gold imports to jump 75% this quarter, supporting higher global gold prices.

The dollar slipped after pending home sales in September fell short of forecasts and, according to Markit, activity in the U.S. services sector fell to a six-month low in October. The dollar was also pressured by a rising euro after news that merely 25 of the Eurozone's top 130 banks failed the ECB's stress-tests for capital requirements, fewer than expected.

The other metals were mixed with silver dipping 0.1% while platinum and palladium added 0.2% and 0.5%, respectively.

At the Comex close: December gold edged down 2.50 cents $1,229.30; December silver dipped 2 cents to $17.16; January platinum picked up $3.60 to $1,254.50; and December palladium rose $6.25 to $787.15 an ounce.




October 24: Gold edges up 0.2% as dollar slips

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold edged up 0.2% to close just under $1,232 as a falling dollar boosted demand for alternative stores of value. Following two straight weekly gains, the metal finished a loss of 0.6% this week as rallying equities stimulated appetite for risk.

The dollar fell against a basket of rivals led by the euro, which is trading higher in reaction to unexpected growth the Eurozone. The buck was also pressured by flights to safety following news that a doctor in New York contracted Ebola, raising concerns about the possible spread of the virus. A falling dollar boosts prices for gold and other commodities denominated in the currency for international trade by making it less expensive to foreign buyers.

Gold's gains were capped by rising U.S. and global equities. The Dow and S&P 500 extended yesterday's gains, rising another 0.6% each on improved corporate earnings and data showing new home sales hit a six-year high in September. Optimism about the housing market was tempered, however, by sharp downward revisions for new homes sales in August. Global shares as measured by the MSCI world equity index had their biggest week since July 2013.

The other metals were mixed for the day and week. Silver added 0.2% today and but subtracted 0.8% for the week. Platinum shed 0.3% for the day but gained 0.8% for the week. Palladium rose 0.2% today and a whopping 3.2% this week.

At the Comex close: December gold edged up $2.70 to $1,231.80; December silver added 2 cents, to $17.18; January platinum shed $4.10 to $1,250.90; and December palladium rose $1.60 to $780.90 an ounce.




October 23: Gold falls 1.3% on rising risk appetite

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1.3%, the most in two-weeks, to close at $1,229 as upbeat economic data combined with higher reported corporate earnings to boost risk appetite.

Manufacturing in the Eurozone rose unexpectedly last month, reducing risk of recession, with Germany's factory gauge rising nearly 2%. China's factory activity also rose, indicating that the world's second-largest economy may be pulling out of its recent downturn in exports and overall growth.

Closer to home, U.S. manufacturing slipped to a three-month low but still showed momentum and first-time jobless claims rose by 17,000 but held under 300,000 for the sixth straight week. Home prices rose in August, beating estimates, and the Conference Board's index of economic indicators edged up 0.8% in September after remaining flat in August.

The generally positive data stoked risk appetite, causing traders to take profits from the recent gold rally and shift into equities. The Dow surged more than 230 points, or 1.4%, and the Global Dow added 0.4%.

The other precious metals were mostly lower, with silver and platinum dropping 1.8% and 1.2%, respectively, while outlier palladium added 0.2%.

At the Comex close: December gold fell $16.40 to $1,229.10; December silver dropped 32 cents to $17.23; January platinum slid $16 to $1,255; and December palladium added $1.55 to $778.25.




October 22: Gold slips 0.5% on profit-taking, dollar

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.5%, closing at $1,445.50, as a stronger dollar caused traders to take profits after the metal's two-day rise of 1% to a six-week high.

Consumer inflation was slightly stronger than expected in September, with the CPI gaining 0.1% after falling 0.2% in August. The uptick helped the dollar rise to a five-day high against its major rivals as traders viewed the price data as evidence that deflation isn’t taking hold. Nonetheless, the ongoing weakness in inflation gives the Fed greater latitude to keep interest rates near zero, something that is supportive of higher gold prices.

A rising dollar pressures gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies. The other metals were also weaker today, with silver falling 1.8% while platinum and palladium dropped 1.2% and 0.9%, respectively.

At the Comex close: December slipped $6.20 to $1,245.50; December silver dropped 32 cents to $17.23. January platinum lost $16.20 to $1,266.80; and December palladium dipped $6.80 to $769.20 an ounce.




October 21: Gold climbs again to six-week high

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold climbed another 0.5%, closing at a six-week high near $1,252, as news of additional stimulus in the Eurozone and better-than-forecast growth in China boosted commodity demand.

The ECB is considering plans to begin purchasing corporate bonds as early as December in order to revive the moribund Eurozone economy. The move would expand private-sector bond-purchases, which began on Monday, without the political complications of buying government bonds, something that Germany resists. Tantamount to printing money, the purchases are intended to combat deflation by stimulating inflation in the world's third largest economy.

Data showed China's GDP grew 7.3% in the third quarter, its weakest in five years but above the consensus forecast of 7.2%, and factory output rose by 8%. The Bloomberg Commodity Index gained nearly 0.8%, buoyed in part by optimism about higher factory demand from China. After announcing $80 billion in broad-based stimulus recently, the Chinese government is expected to extend additional support to targeted areas of the economy to increase growth.

Bloomberg reported that physical gold demand is rising in India as the festival of Diwali begins this week. Celebrated by more than 800 million Hindus, Diwali is considered an auspicious time to buy gold bullion and jewelry. Indian trade organizations expect gold imports to jump 75% this quarter, supporting higher global gold prices.

The other precious metals outpaced gold's gains. Silver rose more than 1% while platinum and palladium jumped nearly 1.2% and palladium surged 1.9%.

At the Comex close: December gold climbed $7 to $1,251.70; December silver rose 19 cents to $17.54; January platinum jumped $15 to $1,283; and December palladium surged $14.70 to $777 per ounce.




October 20: Gold gains 0.5% on falling dollar

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained nearly 0.5% to close just under $1,245 behind a weaker dollar and stronger demand for physical bullion overseas.

The dollar fell nearly 0.5% against a basket of rivals after another Fed official cautioned against raising interest rates prematurely. Boston Fed President Eric Rosengren said over the weekend that the Fed should be very cautious about raising interest rates until the economy can withstand it, adding that he could "easily imagine" keeping rates near zero until 2016.

Rosengren joins a growing chorus of central bankers, including Vice Chair Stanley Fisher and Charles Evans of the Chicago Fed, calling for caution in tightening monetary policy because of weaker global growth, market turmoil, and falling inflation. Last week, St. Louis Fed President James Bullard suggested delaying the end of quantitative easing because of falling inflation, and James Williams of the San Francisco Fed warned that a fourth round of quantitative easing may be needed in the event of a sustained deflationary forecast.

Hedge funds and big money managers are turning bullish again, causing net-long positions in futures and options to jump 39% last week for the biggest rise since late June. In addition, bullion backed ETPs added nearly 5 metric tons last week.

Demand for physical bullion is rising in India because of lower prices and the advent of the festival and wedding seasons, traditionally an auspicious time to buy gold. India is the world's second-largest consumer of gold behind China. A weaker dollar will also support higher gold sales because it is denominated in dollars for overseas trade and because relatively less expensive to holders of other currencies when the dollar drops.

The other precious metals tacked higher with gold. Silver edged up 0.1% while platinum and palladium rose 0.5% and 0.8%, respectively.

At the Comex close: December gold gained $5.70 to $1,244.70; December silver edged up 2 cents to $17.35; January platinum added $6.60 to $1,268; and December palladium rose $6.20 to $762.90 an ounce.




October 17: Gold gains for second week, up 1.4%

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold dipped 0.2%, closing at $1,239, as bargain-hunting and upbeat U.S. economic data sparked a rebound in equities, reducing demand for alternative assets. The metal finished the week 1.4% higher, scoring its second straight weekly win on expectations that the Fed will delay tightening monetary policy because of weak inflation and softness in the global economy.

U.S. equities rebounded after heavy losses this week, with the Dow picking up 1.7% after seven down days and the S&P 500 rising 1.4%, as improved corporate earnings combined with expectations of further Fed stimulus to lure bargain-hunters back to the markets. Housing starts rose in September and consumer sentiment jumped to a seven-year high in October, according to the Thomson Reuters survey.

Gold was supported by St. Louis Fed President James Bullard's statement yesterday that the central bank should consider delaying the end of quantitative easing in order to combat declining inflation. U.S. producer prices fell last month for the first time in a year, raising the specter of deflation. QE is expected to end in December after adding $3.5 trillion to the Fed's balance sheet since 2008. Tantamount to printing money, it supports higher prices for gold and equities by increasing liquidity, weakening the dollar, and stimulating long-term infaltion. Bullard added that the Fed could even ramp QE back up if inflation falls further.

Business Monitor International reported today that China's gold production will fall substantially by 2018 because of depleted reserves, higher mining costs, and lower ore quality. The world's most populace nation, China is also biggest gold producer and gold consumer. Lower future production will require substantial increases in Chinese gold imports to meet growing demand, supporting higher gold prices.

The other precious metals were mixed. Silver slid 0.6% but closed the week 0.2% higher. Platinum gained 0.6% today for a weekly rise of just 0.1%. Palladium jumped 1.5% today and 3.6% this week.

At the Comex close: December gold dipped $2.20 to $1,239; December silver slid 11 cents to $17.33; January platinum added $9.90, to $1,259.80; and December palladium gained $11.30 to $753.30 an ounce.




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