Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged up slightly to close above $1,311 on bargain-hunting and safe-haven demand after the world's major industrialized powers threatened deeper sanctions against Russia. Meeting for the first time since the annexation of Crimea, the G-8 suspended Russia from membership in the group and vowed to take additional measures to dissuade Putin from further aggression. Gold rose to a six-month high near $1,380 ten days ago as geopolitical tensions began to mount in the region.

Bullish sentiment for gold was supported by reports that Iraq purchased 36 tons this month, valued at more than $1.5 billion, to stabilize its currency. In addition, China's net gold imports surged 25% last month to nearly 110 tons.

Mixed U.S. economic data kept today's rise in check. Consumer confidence jumped unexpectedly to a six-year high in March, stoking the equity markets and pushing the Dow nearly 100 points higher. Risk appetite was tempered, though, by reports that new home sales plunged in February to a five-month low. The other precious metals failed to follow gold higher. Silver slipped 0.4% while platinum and palladium dropped 0.6% and 0.7%, respectively.

At the Comex close: April gold added 20 cents to $1,311.40; May silver dipped 9 cents, to $19.98; April platinum dropped $10.30 to $1,420.90; and June palladium lost $4.95 to $789.40 an ounce.