Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— With U.S. and many overseas markets closed in observance of Good Friday, gold inched down in Asia, dipping $1.00 to $1,595 an ounce in extremely thin trade. Banks in Cyprus reopened yesterday with little fanfare, reducing immediate fears of an escalation in the eurozone debt crisis and diminishing gold�s safe-haven appeal. Silver picked up 0.4% to just over $28.46 in Asia while platinum and palladium were virtually flat.

Although it finished strongly with gains of 1.1% in March, gold ended the first quarter with a 4.8% loss amidst speculation that the Fed will curtail monetary easing, which encourages higher gold prices because it devalues the dollar and increases the long-term risk of inflation. Comments this week from influential Fed members have largely dismissed the likelihood that easing will end prematurely, however, setting the stage for improving sentiment for gold in the second quarter. Renewed instability in Europe, threatened by recession and the growing possibility of a euro break-up, may also drive gold higher in coming months.