Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.7% to close above $1,137, rebounding from a 10-month low, as the dollar rolled back on profit-taking and conflict with China. The metal still lost 2.1% on the week for its sixth weekly decline in a row.

The dollar fell around 0.2% as traders took profits from yesterday's Fed-inspired 1.2% rally. The central bank raised rates by a quarter-point on Wednesday, as expected, but then surprised marketed by signaling three rate hikes to come in 2017, up from the two suggested at the September FOMC meeting.

The buck was also pressured by reports that China seized a U.S. underwater drone in the South China Sea, the first such seizure of U.S. property in 15 years. The euro and yen rallied on the news, which created uncertainty about the prospects for Sino-American relations already strained by Donald Trump's anti-China campaign rhetoric and post-election outreach to Taiwan.

U.S. housing starts fell in November and construction activity declined, raising questions about momentum in the crucial housing market. However, permits for new construction rose strongly, suggesting that the weakness might be short-lived.

The other precious metals were mixed on the day and week. Silver gained more than 1% today but lost nearly 5% this week. Platinum jumped 3.7% to close the week 0.1% higher. Palladium dropped 1.4% on the day and 5.4% on the week.

At the Comex close: February gold gained $7.60 to $1,137.40; March silver rose 18 cents to $16.14; January platinum jumped $33.80 to $927.40; and March palladium dropped $10.15 to $695.50 an ounce.