Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dropped 1.1% to close under $1,260 after a strong rally in oil prices stoked risk appetite and reduced demand for safe havens. The metal slipped 0.9% for the week but remains up around 20% for the year.

Oil futures climbed, with West Texas Crude adding 2.3% to close near $39 per barrel and Brent crude picking up 2.3% to finish well above $41, after the International Energy Agency said the recent supply glut may be coming to an end. Gaining nearly 8% this week, oil prices have rebounded by around 40% since February lows and is now at a three-month high.

Stock markets rallied sharply, with the Dow climbing 1.3% and the Global Dow 1.9%, behind stronger energy and materials shares.

The other precious metals were mixed on the day and week. Silver added 0.4% today but still lost 0.6% this week. Platinum lost 0.8% today and 1.7% this week. Palladium gained 1.1% on the day and 3% on the week.

At the Comex close: April gold dropped $13.40 to $1,259.40; May silver added 6 cents, to $15.61; April platinum lost $8 to $969.70; and June palladium gained $6 to $579.95 an ounce.