Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold dipped 0.1% to close under $1,867 as upbeat factory data and strength in yields and the dollar prompted traders to take profits from its seven-day rally.

New York's Empire State manufacturing index, often read as an early gauge of national business conditions, rose sharply in November to more than 30 points. Shipments jumped nearly 20 points and new orders 4.5, with any reading above zero indicating growth. Optimism for the future six months dipped, however, on inflation and supply-chain worries.

The dollar added 0.4% to a new 16-month high as traders speculated that the strongest inflation rise in 31 years will force the Federal Reserve to tighten monetary policy more quickly than expected. Higher rates lift the buck by attracting Forex investors seeking higher yield, weighing on gold and other commodities by making them pricier overseas.

Benchmark 10-year Treasury yields also rose on inflation concerns, pushing above 1.62% after last week's pullback under 1.5%. Rising inflation expectations spur bond investors to sell low-yielding bonds, demanding greater returns for tying up money that will lose purchasing power in the future.

Gold surged nearly 3% last week, its strongest weekly rise in five months, as the latest consumer price index showed prices rising at an annualized 6.2%, the fastest in three decades. Gold is often sought as a hedge against loss of purchasing power due to sharply higher inflation.

The other precious metals were mixed, with silver slipping 0.9% while platinum and palladium added 0.7% and 1.8%, respectively.

At the Comex close: December gold dipped $1.90 to $1,866.60; December silver dropped 24 cents to $25.11; January platinum picked up $7.70 to $1,096.90; and December palladium climbed $38.40 to $2,156.10 an ounce.