Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold edged up 0.1% to close just under $1.152 as falling U.S. retail sales caused the dollar to pull back, bringing bargain-hunters back into the market.

Retail sales declined 0.6% in February, falling well short of the 0.3% increase widely forecast and marking the third consecutive month of declines. The widespread drop was attributed in part to unseasonably cold weather, but nonetheless raised questions about how much the economy can grow if Americans refuse to spend. Consumer spending accounts for nearly 70% of GDP.

The dollar dropped from its recent 12-year peak on speculation that declining retail sales will prompt the Fed to delay rate hikes. The buck's recent rally has been driven by the divergent monetary policies of the Fed and other central banks. While the U.S. is expected to tighten monetary policy sometime later this year, a total of 24 other nations have cut interest rates so far in 2015. A stronger dollar pressures gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

The other precious metals were mixed. Silver jumped 1% while platinum finished nearly flat and palladium slid 0.3%.

At the Comex close: April gold edged up $1.30 to $1,151.90; May silver jumped 15 cents to $15.52; April platinum inched down 50 cents to $1,114.90; and June palladium slid $2.45, to $786.95 an ounce.