Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged up 10 cents, closing at $1.310.60 after hitting an intraday high of $1,319, as escalating tensions in the Ukraine and plummeting investor confidence in Germany supported safe-haven demand.

Russia has now amassed more than 45,000 troops with heavy artillery, tanks, rocket launchers, and fighter jets on the Ukraine border in preparation for what it calls a "humanitarian mission," according to the UN secretary-general, who added that an invasion is growing more likely. A convoy of 280 heavy trucks from Moscow, supposedly bearing aid, has been turned away at the border by the Ukrainian government.

Investor confidence plummeted to an 18-month low in Germany, with the Ukraine crisis triggering a sharp sell-off in Eurozone stocks. The euro plunged to an 11-month low on falling growth in Europe region and growing concern that it may be entering a period of Japanese-style deflation.

The dollar strengthened against major rivals, capping gold's advance. A rising dollar tends to pressure gold and other commodities denominated in the currency for international trade by making them more expensive to foreign buyers. The other precious metals were mixed, with silver losing 0.7% while palladium gained 0.4% and platinum finished virtually flat.

At the Comex close: December gold added 10 cents, to $1,310.60; September silver dropped 15 cents to $19.95; October platinum picked up 20 cents to $1,471.80; and September palladium climbed $3.65 to $878.35.