Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinRising for a second session, gold edged 30 cents higher to close near $1,280 as mixed US data and a falling Dow supported safe-haven bids despite a stronger dollar.

Orders for long-lasting manufactured goods rebounded 2.7% in March, posting their biggest rise since last summer on stronger demand for computer network equipment, planes, and cars. Commercial aircraft was the big winner, with orders increasing 31%.

On the down side, first-time unemployment claims jumped in late April to the highest level in 10 weeks. Despite the upsurge, ongoing claims remain near a 50-year low.

The Dow fell 0.4% on weaker-than-expected earnings from blue chips like 3M, which it will cut 2,000 jobs. Downbeat economic data from South Korea and falling earnings in Europe weighed on world stocks and renewed concerns about slowing global growth.

The dollar added 0.1% against major rivals, with the ICE Dollar index nearing a two-year high as several global central banks turned dovish, adding to the buck's attraction for currency investors seeing yield. Sweden announced interest rates would remain low for longer than expected and extended its program of quantitative easing. Yesterday, Canada's central bank also signaled its commitment to low rates.

The other precious metals were mostly higher, with platinum and palladium picking up 0.1% each while silver dipped 0.3%.

At the Comex close: June gold added 30 cents, to $1,279.70; May silver dropped 4 cents to $14.88; July platinum gained $1.10 to $889.70; and June palladium picked up $1.80 to $1,406.90 an ounce.