Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% to close just under $1,230 as strong trade data rallied the dollar and stoked risk appetite, reducing demand for safe havens. The U.S. trade deficit fell to a four-year low in November behind lower oil imports. The dollar rallied on the news and the U.S. stock markets jumped higher, with the S&P 500 gaining for the first time in 2014. A rising dollar weighs on precious metals because they are denominated in dollars internationally and become more expensive for holders of other currencies.

The dollar was also supported, and gold pressured, by speculation that tomorrow's release of the minutes from Federal Reserves last meeting will show solid support for further tapering of quantitative easing, the Fed's program of buying long-term federal bonds to stimulate the economy. QE has supported higher prices for gold and other commodities by devaluing the dollar and increasing the risk of long-term inflation.

The other precious metals were mixed, with silver taking the biggest hit by losing 1.6%. Platinum edged down 0.1 while palladium added 0.4%.

At the Comex close: February delivery gold fell $8.40 to $1,229.60; March silver dropped 32 cents to $19.79 an ounce. April platinum edged down $1 to $1,415.40; and March palladium picked up $3.20 to $741.70 an ounce.