Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained another 0.4% to close just under $1,342, its highest level since late October, as a sputtering U.S. economy fueled safe-haven demand. Geopolitical concerns, especially over violence in the Ukraine, are also underpinning higher gold prices.

Consumer confidence fell in February, according to the Conference Board, because of growing expectations that the economy will worsen in coming months. Separately, the new Case-Shiller index showed home price gains slowed in December, adding to recent evidence that the housing recovery is losing steam. Sales of new homes fell 5% in January, and home construction plunged 16% in January.

The dollar fell on the new wave of soft data while 10-year Treasury prices rose along with gold on flights to safety. Hedge funds have increased their bullish bets on gold to a 16-week high. The other precious metals were mixed. Silver and palladium slid 0.5% and 0.9%, respectively, while platinum inched up 0.1%

At the Comex close: April gold gained $4.70 to $1,342.70; March silver slipped 9 cents to $21.96; April platinum added $1.20, to $1,442.60; and March palladium dropped $6.95 to $736.10 an ounce.