Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.6% to close above $1,062 after weak U.S. economic data and soft Black Friday retail sales boosted safe-haven inflows despite a stronger dollar. Pressured by the prospect of rising interest rates, the metal lost 6.7% in November for its worst monthly performance since June 2013.

The ISM reported its Chicago-region PMI fell into contraction for the sixth time this year as factory orders plunged because of the strong dollar and faltering demand overseas. In a separate report, pending home sales across the nation rose only slightly in October, constrained by tight inventories and high prices.

U.S. indexes receded after retailing stocks were hit hard by disappointing sales on Black Friday, the traditional start of the holiday shopping season. The data added to expectations that Q4 economic growth may fall short of forecasts.

The dollar rallied to its highest level in eight months, propelled by the prospect of a rate hike from the Fed in December and deeper monetary easing in the Eurozone. A rising dollar typically weighs on gold and other commodities denominated in it for international trade.

The IMF said today that it will add the Chinese yuan to its basket of reserve currencies beginning next year. Recognizing China's rise as an economic powerhouse, the change signals the a shift in the balance of power among the elite currencies, including the dollar, euro, pound, and yen. The fund said the yuan will comprise 11% of the basket, more than the pound and yen. China added another 14 tonnes to its gold reserves in October.

The other precious metals were mixed on the day. Silver gained 0.5% while platinum and palladium lost 0.5% and 1.6%, respectively.

At the Comex close: February gold gained $6.40 to $1,062.60; December silver picked up gained 7 cents to $14.08; January platinum slid $4.10 to $831.70; and March palladium dropped $8.45 to $542.30 an ounce.