Daily Gold Update

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Gold was pressured a bit lower today by a stronger U.S. dollar, which was buoyed by better than expected consumer spending on automobiles and construction. Manufacturing in the U.S. improved slightly from last month as well. Gold looked strong overnight in Asian and European trading, pushing to as high as $1,248.80 just before the New York open, but reversed course gradually during the New York session after the consumer spending reports came in. Buyers entered the gold market just under $1,230, putting a floor under today�s modest decline, and gold traded sideways just over $1,230 for the rest of the N.Y. session.

Once the final figures are tallied February�s auto sales may prove to be the strongest in 11 years, keeping annualized automobile sales so far in 2016 on pace with last year�s record setting 17.4 million units. Pent up demand from January�s east coast deep freeze coupled with February promotions and an extra sales day due to leap year were cited as reasons for the strong showing.

The Commerce Dept. reported today that construction outlays in both the public and private sectors rose in February a total of 1.5 percent to $1.14 trillion, the highest level since October 2007. The Institute for Supply Management�s manufacturing index climbed to 49.5, the highest since September, from 48.2 in January. While a reading below 50 signals contraction, today�s report for February indicates that recent declines in manufacturing may be easing.

Stocks got a lift from the upbeat consumer spending reports and the improvement in manufacturing activity, with the DOW gaining over 300 points, the NASDAQ over 100 points and the S&P 500 over 40 points.

At the Comex close: April gold fell $3.60 to $1,230.80; May silver fell 16.2 cents to $14.75; April platinum edged up $2.40 to $936.70; and June palladium surged $21.70 to $517.35 an ounce.