Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dropped 1% to a one-week low of $1,359 after Vladimir Putin reassured the world that Russia has no intention of annexing more parts of the Ukraine. Gold had gained more than 3% last week on flights to safety after Russia occupied the Crimea and amassed troops along its Ukrainian border.

Appetite for safe havens was also diminished by weak consumer inflation and stronger U.S. housing data. The Commerce Department reported permits for new-home construction rising nearly 8% last month. The crucial housing sector, damaged by severe winter weather, appears to be on the rebound.

U.S. and global equities extended yesterday's risk-rally, triggered by relief over milder-than-expected sanctions against Russia by the U.S. and European Union. The S&P 500 finished 0.7% higher for its best two-day gain in five weeks while the Global Dow added 0.8%. The other metals tracked gold lower. Silver tumbled 1.9% to a one-week low while platinum and palladium dropped 0.5% and 0.6%, respectively.

At the Comex close: April gold dropped $13.90 to $1,359; May silver lost 41 cents to $20.86; April platinum fell $6.70 to $1,461; and June shed $5 to $771.40 an ounce.