Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.6% to close just under $1,296 as geopolitical concerns spurred safe-haven buying. After claiming victory in yesterday's referendum on secession, which Kiev dismissed as a "propagandistic farce" programmed by Putin, pro-Russian rebels said today that they intend eastern Ukraine to join with Moscow. Echoing the lead-up to Russia's annexation of Crimea in March, the events have ratcheted up tensions in the region and increased the likelihood of deeper sanctions against Russia by the U.S. and Europe.

Gold was also supported by elections in India that augur well for the lifting of restrictions and duties on gold imports in the near future. The world's second-largest gold buyer behind China, India placed heavy burdens on gold last year in an effort to contain its ballooning current-accounts deficit, putting a severe crimp in demand and affecting global prices.

The other precious metals followed gold higher despite rallying equities and a rising dollar, which typically pressures commodities denominated in dollar for international trade. Silver jumped 2.2% to a one-week high while platinum and palladium added 0.8% and 1.1%, respectively.

At the Comex close: June gold gained $8.20 to $1,295.80; July silver surged 42 cents to $19.54; July platinum picked up $12, to $1,441.90; and June palladium added $9, to $808.75 an ounce.