Precious Metals Market Report by Bill Musgrave – American Gold Exchange

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Gold edged up 0.1% to close above $1,197 as soft U.S. economic data weighed on the dollar and boosted the metal’s appeal as an alternative store of value.

Consumer confidence fell unexpectedly in November, with Americans feeling less optimistic about job prospects and business conditions heading into the crucial holiday season. Home prices across the U.S. advanced at a slower pace in the twelve months through September, according to the S&P/Case-Shiller index, suggesting that the housing recovery may be starting to crest.

The dollar pulled back on the softer data, shaking off an unexpected revision of estimated GDP growth in the third quarter GDP from 3.5% to 3.9%. A weaker dollar generally supports higher prices for gold and other commodities denominated in it for international trade by making them less expensive to holder of other currencies.

Chinese gold demand grew for the third straight month, with net imports from Shanghai totaling 69 tonnes in October after 62 tonnes in September. Overall demand for 2014 is expected to approach 2,100 tonnes, just a bit less than last year’s record-high 2,199, according to a Mineweb report.

The other precious metals handily outpaced gold’s gains, with silver jumping 1% while platinum and palladium added 1.4% and nearly 0.5%, respectively.

At the Comex close: December gold edged up $1.40 to $1,197.10; December silver jumped 17 cents to $16.55; January platinum surged $17.10 to $1,224.60; and December palladium gained $4.45 to $794.55 an ounce.

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