Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.8% to close at a two-week low under $1,060 as tumbling oil and a stronger dollar weighed on commodities.

Oil prices fell more than 3% today as Energy Information Data showed U.S. stockpiles rose 2.6 million barrels last week. In addition, the Saudi Oil Minister said to day that his nation no longer limits production and will meet any increase in demand. Surpluses due to overproduction and reduced demand have slashed oil prices by more than 30% this year.

The dollar bounced 0.2% against major rivals, driven by sizeable gains versus commodity currencies like the Norwegian crown, Russian ruble, and Mexican peso. A stronger dollar pressures gold and other commodities denominated in it for international trade by making them more expensive overseas.

Gold received little safe-haven support from reports that U.S. home resales fell in November for the third time in four months, signaling that growth in the housing sector might be waning.

The other precious metals also finished lower, with silver dropping 0.6% while platinum and palladium slid 2.3% and 1.1%, respectively.

At the Comex close: February gold fell $8.20 to $1,059.80; March silver dropped 6 cents to $13.85; January platinum lost $20.40 to $870.80; and March palladium slid $6.40 to $549.95 an ounce.