Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold climbed 0.4% to close at $1,295, a three-month high, on momentum following Fed Chair Janet Yellen's reassurances that easy-money policies are here to stay. Gold has now gained 3.5% over six straight sessions, its longest winning streak in nearly fifteen months.

Speaking before Congress earlier this week, Yellen voiced optimism about the economy while reiterating that U.S. monetary policy will remain very supportive for quite some time in order heal labor markets hobbled by the recession. She emphasized that near-zero interest rates will stay in place long after the jobless rate drops below the Fed's previous threshold of 6.5%, meaning cheap liquidity will continue to rule the markets long after quantitative easing, the Fed's bond-buying program, has been phased out.

Commodities rallied across the board, in part on speculation that extended monetary stimulus will suppress the dollar and increase the risk of long-term inflation. Oil reclaimed $100, adding to global inflationary concerns, after OPEC raised forecast on global demand for 2014, and data showed record-high oil imports for China in January.

The other precious metals outpaced gold today. Silver added 0.9% to mark its eighth consecutive winning session and longest streak in nearly three years. Platinum and palladium climbed 1.4% and 1.8%, respectively.

At the Comex close: April gold gained $5.20 to $1,295; March silver added 19 cents, to $20.34; April platinum climbed $19.50 to $1,407.30; and March palladium jumped $12.70 to $729.05 an ounce.