Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold eased 0.3%, breaking a two day winning streak to close just under $1,085, as the prospect of a December rate hike continued to weigh on commodities. It was the metal's lowest close in more than five years.

After a surprisingly strong nonfarm payrolls report caused it to drop 1.5% last Friday, gold edged higher for two straight sessions as bargain-hunters put a floor under prices. Today, those gains eroded under expectations that U.S monetary policy will diverge from that of Europe, Japan, and China in coming months, further strengthening the dollar. A rising dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers.

The prospect of deeper easing in China is boosting demand in Asia, the world's leading gold-consuming region. Data released today showed that China's industrial output slowed again in October, raising the likelihood of additional stimulus from the PBOC. Premiums on the Shanghai Gold Exchange jumped as high as 4% an ounce today, reflecting strong buying in China.

The other precious metals also finished lower, with silver losing 0.6% while platinum and palladium lost 1.8% and 3.5%, respectively.

At the Comex close: December gold eased $3.60 to $1,084.90; December silver lost 9 cents to$14.26; January platinum dropped $16.40 to $883.10; and December palladium plunged $20.80 to $577 an ounce.