Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Breaking a three-session winning streak, gold fell 1.7% to close above $1,210 as rallies in stocks, oil, and the dollar reduced demand for alternative assets.

Stock markets surged, with the Dow and Global Dow both picking up 1.4%, after a 7% surge in oil prices lifted energy shares and boosted risk appetite. Oil jumped in response to reports that U.S. oil rigs have dropped in number to a six-year low and shale oil production is likely to fall by 600,000 barrels this year, helping to ease the global supply glut.

The dollar jumped sharply against major rivals, especially the pound and euro, with the Dollar Index adding 0.7% after worries intensified that the UK will leave the EU. Prominent politician Boris Johnson, mayor of London, said today he would campaign for the British exit, to be determined by a referendum in June. A stronger dollar weighs on gold and other commodities denominated in it for international trade.

The buck's gains came despite weaker U.S. manufacturing sentiment. Markit's flash PMI for February fell to the lowest level since 2009. Hammered by the strong dollar and falling global demand for exports, U.S. factories are reporting their worst business conditions in three years, according to Markit.

The other precious metals also finished lower, with silver dropping 1.2% while platinum and palladium fell 1.9% and 0.1%, respectively.

At the Comex close: April gold fell $20.70 to $1,210.10; March silver lost 19 cents to $15.18; April platinum surrendered $17.80 to $927.80; and March palladium slipped 40 cents to $498.65 an ounce.