Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Breaking a four-session winning streak, gold slipped 0.3% to close above $1,250 in volatile trade as the dollar strengthened behind dovish comments from Mario Draghi about monetary easing in the Eurozone.

Meeting to set policy, the ECB held Eurozone interest rates unchanged, perhaps reacting to criticism from Germany about negative rates despite slow growth and low inflation. The euro rallied hard against the dollar, helping gold to surge to $1,272 while silver jumped as high as $17.72.

However, the currencies reversed direction and the metals surrendered their gains later in the session after ECB Chief Mario Draghi robustly defended the bank's easy money and low-rate policies. A stronger dollar typically weighs on gold and commodities denominated in it for international trade by making them more expensive overseas.

The dollar was also supported by a report that jobless claim fell last week to the lowest level since 1973, suggesting strength in the labor market despite sluggish growth in the first quarter.

The other precious metals were mixed, with silver slipping 0.3% while platinum and palladium added 0.4% and 2.2%, respectively.

At the Comex close: June gold slid $4.10 to $1,250.30; May silver slipped 4 cents to $17.09; July platinum picked up $3.80 to $1,031.90; and June palladium gained $13 to $610.05 an ounce.