Daily Gold Update

Source: American Gold Exchange

Austin— Gold gained again today as positive reports on employment and consumer confidence in the U.S. helped to drive safe-haven money out of the dollar and back toward gold and equities. New claims for jobless benefits fell again last week and held at a four-year low, while U.S. consumer confidence rose to its highest lelvel since April 2008, increasing hopes of recovery. The S&P closed near a 10-month high Gold picked up nearly .6% to hit its highest level since early November, while silver surged nearly 4% to reach its highest point since mid-September.

At the closes: April gold added $15 to $1,786.30; March silver surged $1.30 to $35.56; April platinum rose $4.10 to $1,724.90; and March palladium gained 95 cents to 718.70 an ounce.

Gold and silver were also driven higher today by growing tension with Iran and the market's realization that Europe will keep Greece afloat by printing money. Oil surged nearly 2.5% to more than $108 per barrel, partially in response to sanctions and saber-rattling. As a hedge against inflation, gold will benefit if oil prices increase further because of trade disruptions or military intervention. And the European Council acknowledged today that Europe is slipping back into recession. More easing will likely be forthcoming for stimulus and bailouts, and all of this excess liquidity should provide ballast for substantially higher gold and silver prices.