Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold added 0.3% to close just under $1,332 on safe-haven demand after tension escalated in the Ukraine. Pro-Russian militants stormed government offices in the region of Crimea, raising questions about a possible Russian intervention in the unstable nation, which has been wracked for months by violence and political turmoil. Demand for gold tends to rising with geopolitical uncertainty as investors shed risk.

Gold was further supported by Janet Yellen's testimony before the Senate Banking Committee today acknowledging "softness" in recent economic data. The new Fed Chair blamed "adverse weather conditions" for some but not all of the slowdown, noting that the Fed will carefully weigh data in coming months. Traders took Yellen's comments to imply a possible slowing of reductions in quantitative easing, which, she emphasized, are "not on a preset course." Tantamount to printing money, QE has supported higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

The dollar pulled back against major rivals, giving a boost to precious metals and other commodities denominated in dollars from international trade. Silver picked up 0.3% while platinum and palladium jumped 1.7% and 1.4%, respectively, on supply concerns because of strikes at South Africa's Rutenberg mine.

At the Comex close: April added $3.80 to $1,331.80; May silver picked up 6 cents to $21.35; April platinum jumped $24.30 to $1,453.40; and June gained $10.55 to $743.85 an ounce.