Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.3% in light volume, settling at a six-week low, as traders await this Friday's G-20 meeting in Moscow for clues on international monetary policy. While little news is expected, the gathering of finance ministers from the largest industrialized nations may signal whether additional currency devaluations are in store. Led by Japan, many nations have cut their interest rates in order to make their exports more attractive, albeit at the risk of courting substantially higher inflation. Gold was also pressured by a lack of trade in Shanghai because of the Lunar New Year holiday. Silver fell 0.5% while the PMGs pressed higher, with palladium adding 0.1% and platinum 0.7% behind supply concerns after Zimbabwe, a major producer of PMGs, seized lands from the nation's top miner.

At the Comex close: April gold dipped $4.50 to $1,645.10; March silver fell 15 cents to end at $30.87; April platinum gained $12.50 to $1,729.70; and March palladium rose 65 cents to $772.05 an ounce.

Legendary investor Peter Schiff of Euro Pacific Capital said today that he still expects gold to climb above $5,000 an ounce in the current bull cycle, probably within three to five years. According to Schiff, the recent weakness in the gold market means nothing, and gold has proven much less volatile than stocks in recent years. He views continued monetary easing as the big driver behind far higher gold prices. "We are creating so much money. Japan, Europe, China, the whole world is engaging in a race to debase. Everybody thinks inflation is good, printing money is good, a weak currency is good," Schiff told Marketwatch, but "a lot of people will get caught by surprise. People who buy [gold] and have the patience to hold on will be rewarded."