Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.3% to close above $1,251 as the dollar fell, boosting demand for alternative stores of value. The metal dipped 0.2% in March but still enjoyed its strongest quarter in a year, rising 8.2%.

The dollar backtracked against major rivals, dropping 0.2% as the euro and the pound rebounded from softness earlier in the week. The buck closed out Q1 with an 1.8% loss as traders worried that gridlock in Congress may prevent President Trump from fulfilling the pro-growth agenda promised in his campaign. A weaker dollar supports gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

Financial markets largely shook off reports that inflation pushed above the Fed's 2% target for the first time since in nearly five years. The PCE index, preferred by the Fed, edged up to 2.1% for the previous 12 months in February, driven largely by higher oil prices.

Fred Bullard of the St. Louis Fed downplayed the importance of the PCE data, saying it was unlikely to rise much above the 2% target. He added that Fed members are misguided if they think steady hikes are necessary over the next few years, forecasting instead just one this year and none for 2018 and 2019.

The other precious metals were mixed for the session but higher for the quarter. Silver gained 0.3% today and 13.5% in Q1. Platinum slipped 0.4% today but added 5% this quarter. Palladium edged up less than 0.1% today to gain 16.8% this year.

At the Comex close: June gold gained $3.20 to 1,251.20; May silver picked up 5 cents to $18.26; July platinum dropped $3.50 to $951.10; and June palladium added 65 cents, to $798.15 an ounce.