Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.2% to close at $1,267.50 after dovish comments on monetary policy from the European Central Bank pressured the euro, strengthening the dollar and blunting demand for alternative stores of value. After rising 1.2% to a two-week high over the previous three sessions, gold was also subject to minor profit-taking.

The ECB voted to hold interest rates unchanged at its policy meeting this week, but also signaled that it is open to increasing monetary stimulus when it meets again in December. Trying to fight stubbornly low inflation, the central bank has flooded the Eurozone with cheap money for years through negative interest rates and quantitative easing.

The dollar rallied 0.5% against major rivals, boosted by a tumbling euro after the ECB's announcement. A stronger dollar pressures gold and other commodities denominated in it for international trade by making them more expensive to foreign buyers.

Mixed U.S. economic reports had little effect on the gold market. Jobless claims jumped by 13,000 last week and manufacturing in the Philly Fed region pulled back modestly in October. Home resales surged in September, however, after two straight months of declines.

The other precious metals fell more than gold, with silver dropping 0.7% while platinum and palladium lost 0.9% and 0.4%, respectively.

At the Comex close: December gold slipped $2.40 to $1,267.50; December silver fell 11 cents to $17.55; January platinum dropped $8.10 to $935.40; and December palladium lost $2.65 to $632.85 an ounce.