Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.8% to close under $1,241, pulling back from a five-week high, on speculation that the Fed will further reduce monetary stimulus this month. The Wall Street Journal's Jon Hilsenrath, a long-time Fed watcher, wrote today that the central bank is on track to cut quantitative easing, its program of buying long-term government bonds to increase liquidity and suppress borrowing costs, by another $10 billion when it meets again on January 29. Tantamount to printing money, QE supports higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

The other precious metals also finished lower. Typically more volatile than gold, silver plunged 2.1%. Platinum and palladium edged down less than 0.1%, buoyed by the prospect of strikes by South African miners.

At the Comex close: February delivery gold fell $10.10 to $1,241.80; March silver plunged 43 cents to $19.87; April platinum dipped 60 cents to $1,453.50; and March palladium slipped 50 cents to $748.05 an ounce.