Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% for its third stright down session as the dollar rose on the prospects of deeper monetary easing in the eurozone. ECB chief Mario Draghi said today that the central bank is ready to begin Fed-style asset purchases in June to combat deflation. The euro immediately tumbled from a 30-month high, boosting the dollar and pressuring gold, which is denominated in dollars for international trade and becomes more expensive to holders of other currencies.

The downward pressure was mitigated in part by Fed Chair Janet Yellen's testimony before a Senate subcommittee today, saying the Fed's balance sheet may take eight years to shrink to pre-quantitative-easing levels. Tantamount to printing money, QE has poured $4.5 trillion into the economy, undermining the dollar, increasing the risk of long-term inflation, and supporting higher gold prices. A slow unwinding effectively means monetary stimulus for years to come, which is good for gold.

The other precious metals were mixed, with silver falling 1.1% while platinum and palladium picked up 0.2% and 0.9%, respectively.

At the Comex close: June gold dipped $1.20 to $1,287.70; July silver fell 20 cents to $19.14; July platinum picked up $3.30 to $1,438.10; and June palladium gained $7.35 to $804.05 an ounce.