Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.6% to close just over $1,238 as positive economic reports boosted the dollar and diminished demand for the metal as an alternative store of value. Manufacturing in the New York region jumped to the highest level since May 2012, promising better health for the U.S. factory sector. The Fed's so-called Beige Book, an anecdotal survey of major businesses and employers, was released today showing a positive outlook for economic growth. And wholesale inflation rose for the first time in three months but remains tame at an annual rate of 1.2%.

The dollar rallied across the board and Treasury bonds slipped as the upbeat data stoked risk-appetite and increased speculation that the Fed may further reduce quantitative easing, its program of buying $75 billion in long-term government bonds per month, when it meets in January. A stronger dollar weighs on gold and other commodities denominate in dollars for international trade. The S&P 500 closed at a new record high above 1,848, sapping more momentum from the metals complex. Silver fell 0.7% and platinum lost 0.4% while palladium picked up 0.7%.

At the Comex close: February dropped $7.10 to $1,238.30; March silver fell 15 cents to $20.13; April platinum lost $5.20 to $1,428.60; and March palladium picked up $5.10 to $744 an ounce.