Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged up slightly to close above $1,257 after the European Central Bank kept its main lending rate steady for now. Traders were widely expecting a rate cut in response to stagnating growth, deflationary pressure, and sell-offs in emerging-market currencies that are further depressing eurozone prices. ECB President Mario Draghi signaled that action may nonetheless come in March.

The Dow and S&P 500 jumped 1.2% each, enjoying their biggest one-day percentage gains of the year, after U.S. jobless claims fell by more than expected last week, bolstering confidence in the economy ahead of tomorrow's release of the non-farm payrolls report.

The euro rallied on the ECB rate news, putting downward pressure on the dollar and supporting gold and silver. Precious metals and other commodities become more attractive to holders of other currencies when the dollar weakens because they are denominated in dollars for international trade. Silver gained 0.6%, adding to yesterday's 2% rally, and palladium added 0.5% while platinum dipped 0.3%.

At the Comex close: April gold edged up 30 cents to $1,257.20; March silver gained 12 cents to $19.93; April platinum lost $4.40 to $1,374.90; and March added $3.25, to $710.35 an ounce.