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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 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.




October 16: Gold slips 0.3% on profit-taking, data

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.3%, closing just above $1,241, on profit-taking after a three-day rally that lifted the metal more than 2% to its highest level in nearly five weeks. A mild rebound in equities and some positive U.S. economic data also pressured the metal by reducing demand for safe-havens.

One day after a series of disappointing economic reports caused U.S. equities to drop by more than 1% and gold to rally by nearly the same amount, a round of positive U.S. data gave the market some cause for optimism. Jobless claims fell 23,000 to a 14-year low last week as employers avoided lay-offs despite a slowing global economy. Separately, the Fed reported that factory production edged up 0.5% in September after falling by the same amount in August, and American households are their most upbeat about prospects in two years.

Yesterday's report of falling producer prices is prompting further concern about the direction of the economy and monetary policy. Saint Louis Fed President James Bullard said today that the Fed should continue with quantitative easing longer than expected in light of falling inflation, volatile markets, and slowing global growth. A renowned inflation hawk who has never been a strong advocate of QE, Bullard surprised the markets by calling for the continuation of the Fed's bond-buying program. Tantamount to printing money, QE is bullish for gold because it devalues the dollar and increases risk of long-term inflation.

The other metals tracked lower with gold. Silver dipped 0.2% while platinum and palladium fell 0.7% and 2.4%, respectively.

At the Comex close: December gold slipped $3.60 to $1,241.20; December silver dipped 4 cents to $17.43; January platinum lost $9.30 to $1,251.50; and December palladium dropped $18.75 to $745.50.




October 15: Gold jumps nearly 1% on weak U.S. data

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold jumped nearly 1% to close just under $1,245, its highest finish in nearly five weeks, as a spate of weak U.S. economic data spurred another sharp sell-off in equities and the dollar, boosting demand for safe havens.

Retail sales dropped more than expected in September, signaling a broad pullback by consumers in the wake of stagnant wage growth. Manufacturing and general business conditions in the bellwether Empire State Fed region plunged in October, leading traders to expect another weak national ISM factory report, due out in two weeks. And wholesale prices fell in September for the first time in a year, underscoring the challenges facing the Fed as it struggles to combat deflation by stimulating inflation.

The softening U.S. data combined with ongoing weakness in Europe and Asia to drive investors toward safety and away from risk assets. Benchmark 10-year Treasury yields fell below 2% for the first time in 16 months as prices continued to rally. The Dow and Global Dow both dropped 1%. The dollar plunged against a basket of rivals, losing nearly 1% on sentiment that falling inflation and a slowing economy will prevent the Fed from raising interest rates until late 2015 at the earliest.

The other metals were mixed. Silver added 0.4% while platinum and palladium, more directly tied to global industry, lost 0.9% and a whopping 3.9%, respectively.

At the Comex close: December climbed $10.50 to $1,244.80; December silver added 6 cents to $17.46; January platinum lost $11.40 to $1,260.90; and December palladium plunged $30.85 to $764.25 an ounce.




October 14: Gold gains 0.4% on global growth worries

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold gained another 0.4%, closing near a four-week high above $1,234, as deepening worries about global growth stimulated safe-haven buying. Holdings in bullion-backed ETFs rose yesterday by the most since July.

German economic sentiment turned negative this month for the first time in two years while the government slashed growth forecasts by one-third for 2014 and 2015. Citing weaker global demand and rising geopolitical turmoil as the main drags on its prospects, Europe's biggest and heretofore strongest economy expects growth of merely 1.2% this year and 1.3% next.

Fund managers are becoming less risk-tolerant, according to a new Merrill Lynch survey, increasingly shying away from equities, especially from Europe and emerging markets. Less than a third expect a stronger global economy in the next year, down 20% from last month.

Another Fed officials came forward to voice concern about the effect of slowing global growth on the U.S. recovery. John Williams of the San Francisco Fed said today that the central bank might have to undertake a fourth round of quantitative easing if the economy falters and we get "a sustained deflationary forecast." After adding $3.5 trillion to its balance sheet since 2008, the Fed is scheduled to end QE3 this month. Tantamount to printing money, QE supports higher gold prices by devaluing the dollar and driving up the risk of long-term inflation

U.S. Treasury prices climbed sharply along with gold on flights to safety as traders fret over growth worries. The other precious metals were mixed. Silver picked up 0.3% and platinum added nearly 1% while palladium fell 2.3%.

At the Comex close: December gold gained $4.30 to $1,234.30; December silver picked up 6 cents to $17.40; January platinum added $11.10, to $1,272.30; and December palladium fell $18.65 to $783.55 an ounce.




October 13: Gold climbs 0.8% to three-week high

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold climbed 0.8%, closing at three-week high near $1,232, as concerns about slowing global growth raised speculation that the Fed will delay increasing interest rates, spurring safe-haven demand for the metal as an alternative store of value.

Speaking at the IMF's annual meeting in Washington over the weekend, Fed Vice Chair Stanley Fischer said slowing worldwide growth "could lead the Fed to remove accommodation more slowly." Charles Evans of the Chicago Fed said separately today that the global slowdown may warrant interest rates staying near zero until the first quarter of 2016, far longer than the mid-2015 start to tightening widely expected by the markets.

Treasurys rose on the apparent shift in Fed disposition while the dollar fell, supporting demand for gold and other commodities denominated in it for international trade by making them less expensive to foreign buyers. U.S. equities fell sharply again, with the Dow surrendering 1.3% and the S&P 500 losing1.5%.

The other precious metals were mixed. Silver gained 0.4% and palladium added 0.2% while platinum dropped 1.3% on reports that vehicle sales in China plunged to a 19-month low. Platinum is widely used in auto catalytic converters.

At the Comex close: December gold gained $8.30 to $1,231.60; December silver picked up seven cents to $17.37; October platinum dropped $17.30 to $1,261; and December palladium added $1.45 to &786.50 an ounce.




October 10: Gold slips but adds 2.4% for week

Source: Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.3%, closing just under $1,221 as the dollar rebounded slightly. The metal still gained 2.4% for the week, its biggest weekly climb since June, while dollar incurred its first weekly loss in more than three months.

Wednesday's release of minutes from the September FOMC meeting showed the central bankers growing increasingly concerned that low inflation, a too-strong dollar, and slowing global growth could undermine the U.S. recovery. Traders speculated that the Fed is therefore less likely to rise interest rates before mid-2015. Lower rates for longer would weaken the dollar, supporting gold and other commodities denominated in it for international trade by making them less expensive.

In a development that could devalue the dollar in the longer-term, the ECB will consider laying the groundwork for adding the yuan to its reserves, according to Bloomberg, which would be a major step toward internationalizing the Chinese currency. Although China has the world's second-largest economy, the yuan is not a significant part of most nations' currency reserves, whereas dollars compose 61% of all holdings. Gravitation toward the yuan in reserves has the potential to reduce the proportion of dollars held by foreign governments, reducing demand.

The other precious metals were also lower on the day but higher on the week. Silver dropped 0.7% today but jumped 2.5% this week. Platinum slipped 0.4% for a weekly rise of $3.6%. Palladium lost 1.8% but finished the week 4.1% higher.

At the Comex close: December gold slipped $3.60 to $1,221.70; December silver lost 11 cents to $17.30; October platinum slid $5.69 to $1,260.50; and December palladium retreated $14.70 to $785.80.




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