Precious Metals Market Report by Bill Musgrave – American Gold Exchange
Gold dipped 0.2% in light trading to close just above $1,196 as rising global equities reduced demand for safe havens. The Dow and S&P 500 closed at new record highs and the Global Dow gained behind expectations of yet more stimulus in the Eurozone.
The dollar rolled back slightly after Dallas Fed Chief Richard Fisher said inflation should be allowed to run a little higher than the Fed’s target 2% for a while. Fisher is the FOMC’s leading inflation hawk, so his allowance for higher inflation led currency traders to speculate that the Fed take its time in rising interest rates. A softer dollar typically helps gold by making it less ex-pensive to overseas buyers, boosting demand.
The other precious metals also closed lower, with silver slipping 0.1% while platinum and palladium gave up 1.7% and 0.4%, respectively.
At the Comex close: December gold dipped $1.50 to $1,196.20; December silver slipped 2 cents to $16.38; January platinum fell $20.86 to $1,206.44; and December palladium dropped $3.75 to $791.15 an ounce.
