Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold added 0.3% to close above $1,600 as disappointing factory data in the U.S. and China pointed to slowing economies, boosting demand for safe-havens. The Institute for Supply Management survey fell unexpectedly to 51.3 in March from 54.2 in February, indicating that U.S. manufacturing expanded at its slowest pace in three months. A number below 50 implies contraction. Most analysts blame sequestration, the $16 billion reduction in government spending resulting from the fiscal impasse, which is projected to cut GDP by 0.6% over the next two quarters and slow the pace of recovery.

Manufacturing in China rose slightly but was still weaker than expected, suggesting an anemic recovery in the world�s second-largest economy, too. Equities and the dollar dropped after the reports while Treasuries gained along with gold on flights to safety. Silver lost 1% while platinum and palladium rose 1.5% and 2%, respectively, on growing optimism about auto demand in the U.S. and emerging markets. Both metals are used extensively in catalytic converters.

At the Comex close: June gold gained $5.20 to $1,600.90; May silver lost 38 cents to $27.94; July platinum added $24.20 to $1,598.80; and June palladium rose $15.70 to $783.95 an ounce.