Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold climbed another 1.1% today, posting a 2% gain of the week and finishing above $1,238, its highest level in three weeks. Prices were buoyed by rising physical demand as investors, growing distrustful of recent stock market gains, continued to rebalance into gold and silver as safe havens at lower prices The Asian Dow lost more than 1% while the Global Dow and S&P 500 edged marginally lower.

The U.S. Mint announced strong sales of 2014 American Gold Eagle coins on their first day of availability, following a 15% increase in sales year-over-year in 2013. Gold premiums in China remained above $20 per ounce for the second straight day, well-over the $18 average for 2013, itself a year of record demand.

Gold was also supported by Ben Bernanke's reassurances, in what's likely his final speech as Fed Chair, that the central bank remains strongly committed to highly accommodative monetary policy despites its decision to taper quantitative easing by $10 billion this month. Tantamount to printing money, QE has supported higher gold prices by undermining the dollar, flooding the economy with liquidity, and raising the risk of long-term inflation.

The other precious metals tracked gold higher for the day and week. Following yesterday's rally of nearly 4%, silver added another 0.4% today for a weekly rise of 0.8%. Platinum picked up 0.7% for a gain of 2.6% on the week, while palladium edged up 0.1% for a weekly increase of 2.7%.

At the Comex close: February gold climbed $13.40 to $1,238.60; March silver gained 8 cents to $20.21; April platinum added $9.60, to $1,414.20; and March palladium edged up 95 cents to $731.20 an ounce.