Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% for its first down session in three as traders took profits ahead of tomorrow's FOMC meeting. Following this month's taper of $10 billion, the Fed is widely expected to trim quantitative easing by another $10 billion in February, reducing its buys to $65 billon per month. Tantamount to printing money, QE has boosted prices for gold and equities by flooding the economy with liquidity and increasing the risk of long-term inflation. Gold's losses were mitigated by reports that China's gold imports from Hong Kong rose to an all-time record exceeding 1,100 tons last year, 33% higher than the year before, a trend that is expected to continue.

U.S. and global equities fell back on the taper speculation, with the Global Dow dropping 1% and the S&P 500 losing nearly 0.5% while the dollar crept higher against most rivals. A stronger dollar weighs on gold and other commodities denominated in dollars for international trade by making them more expensive to holders of other currencies. Platinum and palladium shed 1.7% and 0.5%, respectively, while silver stood fast with a gain of 0.1%.

At the Comex close: February gold dipped 90 cents to $1,263.40; March silver edged up 3 cents to $19.79; March palladium dropped $12.25 to $722.55; and April platinum fell $7.50 to $1,421.10 an ounce.