Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold added 0.2% to close above $1,340 after soft U.S. economic data reinforced concerns about a sputtering recovery and spurred safe-haven demand. The ISM index for February showed the services sector slowing to the worst pace since February 2010 while its employment sub-index fell into contraction for the first time in four years. Separately, ADP reported that private employers added fewer jobs than forecast in February and January's totals were revised down by more than 25%.

At her ceremonial swearing-in ceremony today, new Fed Chair Janet Yellen vowed to do all she can to boost growth. Acknowledging that the economy is "falling considerably short of objectives," Yellen reiterated her intention to maintain accommodative monetary policies for a long time to come. Fed policies like quantitative easing and near-zero interest rates are supportive of higher gold prices because they weaken the dollar and increase the risk of long-term inflation.

Treasury prices gained along with gold on flights to safety while the Dow shaved off 0.2% of yesterday's gains. Silver picked up 0.2% while platinum and palladium jumped 0.9% and 1.2%, respectively, as talks broke down between PPG producers and striking South African miners.

At the Comex close: April gold added $2.40, to $1,340.30; May silver picked up 5 cents to $21.27; April platinum gained $12.50 to $1,476.60; and June palladium jumped $9.05, to $772.85 an ounce.