Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged up for a second day to close above $1,295 as faltering equities boosted demand for alternative assets. The Dow lost more than 0.8% and the S&P 500 dropped 0.6% as earnings from retailers came in lower than expected. The dollar posted a slight gain on the ICE dollar index, putting a cap on gold's rise. Denominated in dollars for international trade, gold becomes more expensive to holders of other currencies when the dollar strengthens.

The World Gold Council published its Gold Demand Trends Q1 2014 today, showing a strong first quarter. Overall global demand remained almost unchanged year-over-year at nearly 1,075 tons; jewelry purchases rose 3%, aided by a 10% increase in China; and central bank buying remained robust at more than 122 tons, down 6% from Q1 2013 but still very high by historical standards.

Global demand totals were significantly impacted in Q1 by stifling import duties in India, which cut gold purchases by more than 50% in the world's second-largest gold-consuming nation. With the new-elected government expected to lessen restrictions, Indian demand is projected to reach a near-record 1,000 tons this year, according to he WGC.

The other precious metals were mixed today. Silver picked up 0.2%; platinum slipped 0.1%; and palladium jumped 1.3% behind supply concerns over the ongoing, violent miners' strike in South Africa.

At the Comex close: June gold edged up 80 cents to $1,294.60; July silver added 5 cents, to $19.40; July platinum fell $1.30 to $1,468.90; and June palladium gained $10.25 to $825.85 an ounce.