Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold added 0.1% to close just under $1,266 as soft U.S. data offset falling oil and a rising dollar to boost demand for alternative stores of value. The continues to trade above its 200-day moving average of $1,264.50, which traders see as a bullish sign.

The U.S. economy likely grew by merely 0.2% after inflation in the first quarter, that Atlanta Fed said today, following weaker than expected durable goods orders. Jobless claims jumped to a one-month high last week, and pending home sales fell by 0.8% in March.

The dollar edged slightly higher, picking up 0.1% against major rivals, after the ECB said inflationary pressures in the eurozone are not strong enough to end monetary easing. A stronger dollar typically pressures gold and other commodities by making the m more expensive in other currencies.

Gold gains were capped by a 1% plunge in oil prices after two Libyan oil fields came back online, adding to a market supply glut. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were mostly higher, with platinum and palladium picking up 0.1% and 1%, respectively, while silver fell 0.6%.

At the Comex close: June gold added $1.70, to $1,265.90; July silver lost 10 cents to $17.33; July platinum edged up nearly $1 to $948.80; and June palladium rose $8.05 to $813 an ounce.