Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slid 1.2% as weak economic news raised doubts about the global recovery. Equities and commodities also traded sharply lower while the U.S. dollar and Treasury bonds gained on safe-haven inflows. Silver dropped 3.5% for the day and 1.1% for the week. Platinum lost 1.1% for the day and 1.3% for the week, while palladium lost 0.9% and 0.4%, respectively.

At the close: June gold slid $20.40 to $1,660.20; May silver fell $1.13 to $31.39; July platinum lost $18.10 to $1,587.90; and June palladium lost $5.90 to $647.20 an ounce.

China's first-quarter GDP failed to meet expectations, dropping to 8.1% from 8.9% the previous quarter because of reduced exports and construction activity. It was China's weakest quarter since 2009. Spanish bond yields spiked above 6%, fueling fears of sovereign debt contagion in the eurozone. And U.S. consumer sentiment unexpectedly declined in April, weakening the outlook for U.S. growth.

Despite today's loses, gold finished its best week since February with a gain of 1.8%. Last Friday's poor non-farm payroll report started the rally, weakening the dollar and equities and bringing new safe-haven investment to gold. It also prompted two Fed officials, Vice Chair Janet Yellen and New York President Bill Dudley, to speak out in support of extending the Fed's accommodative monetary policies for quite some time, which would be bullish for gold. Gold bullion was also supported this week by growing physical demand in India and China.