Data earlier this session showed U.S. single family home prices dipped in July while the Richmond Fed's composite manufacturing index sank in September.
The dollar hit fresh five-month lows versus the euro after the confidence data, making dollar-priced gold cheaper for European investors.
Many traders expect the dollar's downtrend to continue on a view that any future quantitative easing, even in a modest form, would probably still be more aggressive than moves by other central banks.
"The growing realization that ultra loose monetary policies may debase currencies is leading to continuing safe haven demand for gold. Gold is the only currency that cannot be debased and its value is not dependent on the performance of politicians and central bankers," said analysts at GoldCore in a note.
As the dollar falls, gold will continue to go up along with silver and other commodities. The exception: oil. Oil's value is denominated in dollars, so as the dollar weakens, oil will continue to tread water around the $75 per barrel mark as it has for the last year now. Oil was at about this same point a year ago if not a tad lower.
Meanwhile, stocks continue to rise as well as the trading algorithms continue to bid up up up and the automated systems follow.
Gold was around $750 an ounce just two years ago. Five years ago it was at $475. Food for thought.
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