Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close above $1,309, its highest finish in two weeks, as a falling dollar and rising tensions between the Ukraine and Russia rekindled safe-haven demand. Pro-Russian separatists occupied government buildings in three eastern Ukrainian cities. Blaming Moscow for the insurrection, Kiev dispatched troops to the region, prompting Russia to warn of possible civil war. Gold rallied to a six-month high near $1,390 last month after Russia annexed the Crimea.

The dollar plunged against major rivals and the euro rallied to a two-week high after ECB officials backtracked over the possibility of deeper monetary stimulus in the eurozone. ECB President Mario Draghi said last week that Fed-style bond purchases, known as quantitative easing, may be used to combat falling inflation. A weaker dollar increases demand for gold and silver as an alternative store of value.

The other precious metals followed gold higher. Silver also added 0.8% to reclaim $20 an ounce while platinum and palladium jumped 1% and 1.1%, respectively, on worries that conflict between Russia and the Ukraine may interrupt supplies. Russia is a leading producer of PMGs.

At the Comex close: June gold gained $10.80 $1,309.10; May picked up 15 cents to $20.06; July platinum added $13.90, to $1,441.70; June palladium rose $8.20 to $775.85 an ounce.