Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.2% as a falling dollar boosted demand for alternative stores of value. The British pound surged after the Bank of England provided its first explicit forward guidance on monetary policy, saying interest rates will remain unchanged and quantitative easing will continue until unemployment falls below 7%. Expecting a far more dovish position, traders viewed the guidance as bullish for the pound and rallied it to a seven-week high against the dollar.

The dollar was also pressured by a rising euro after German industrial production rose in June, adding to signs that the eurozone's largest economy is on the rebound. A falling dollar boosts the gold price because gold is denominated in dollars internationally, making it less expensive for holders of other currencies. The other precious metals were mixed, with silver dropping 1 cent while platinum gained 0.7% and palladium added 0.1%.

At the Comex close: December gold gained $2.80 to $1,285.30; September silver dipped 1 cent to $19.51; October platinum picked up $10.50 to $1,438.30; and September palladium added 35 cents, to $723.15 an ounce.