Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged higher, decoupling from falling equities as mixed economic reports in the U.S. and weak eurozone bond sales nudged investors toward safer havens. On the positive side of the U.S. ledger, the Conference Board's index of leading economic indicators rose 0.3% in March to its highest level since 2008, suggesting modest improvements in the economy through the summer. This good news was more than offset by the bad, however: unemployment claims rose unexpectedly to a four-month high; sales of existing homes fell 2.6% in March; and the important Philly Fed index of manufacturing fell sharply, its first decline in six months. The net-negative data helped to pull the S&P 500 lower by 0.6% while gold added 0.1% and silver 0.9%.

At the close: June gold rose $1.80 to $1,641.40; May silver picked up 29 cents to $31.78; July platinum rose $4.10 to $1,583.30; and June palladium rose $7.55 to $664.80.

Signs out of Europe were discouraging, adding to risk-off sentiment. Spanish and Italian bonds declined again and yields rose amid concerns that the debt crisis is worsening. French bonds also dropped after Citigroup said it expects France's credit rating to be cut. On the good side of the ledger was a statement by IMF director Christine Lagarde that she expects at least $320 billion in additional bailout funds for the eurozone, coming from Japan, Denmark and Switzerland. In addition to the good it might do for the solvency of struggling nations like Spain and Italy, this added liquidity will support gold by adding to the risk of long-term inflation.