Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.8%, closing at a one-week low just under $1,297, after a short-term plan to raise the debt ceiling strengthened the dollar and reduced safe-haven demand. Stepping back from the precipice, House Republicans proposed a temporary increase in the federal debt limit until the middle of November, postponing a possible U.S. default and opening the door to budget negotiations with President Obama. IMF chief Christine Lagarde urged a swift conclusion to the impasse, warning that a default would cause "serious damage" to the U.S. and global economies.

Traders optimistically embraced the plan, rallying the dollar and pushing the Dow and S&P 500 up by 2.2% while safe-haven assets like gold and U.S. Treasurys fell. Their losses were mitigated, though, by reports that initial jobless claims surged last week to the highest level in six months, raising concerns about the effect of the government shutdown on the economy's momentum. Silver finished virtually flat. Platinum and palladium, more directly tied to industry, added 0.9% and 1.2%, respectively.

At the Comex close: December gold $10.30 to $1,296.90; December silver added half a cent higher, to $21.90; January platinum picked up $13 to $1,396; and December palladium gained $8.45 to $712.55 an ounce.