Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1% to close near $1,223 after plunging oil prices and weaker equities rekindled safe-haven demand.

Oil tumbled 4% after Saudi Oil Minister Ali Al-Naimi rejected production cuts. Russia and Saudi Arabia had been considering a freeze on production to ease the global supply glut that has crushed oil prices over the past 20 months. Instead, the world's biggest producer has decided to let demand eventually reduce oversupplies.

Global stocks sold off with oil, led by shares in energy companies and banks with exposure to oil and gas firms. The Dow and Global Dow both lost around 1%.

Risk appetite was also hampered by data from the Conference Board showing that consumer sentiment fell to a seven-month low in February. Slower job growth and the falling stock market are making Americans more pessimistic about the economy. Consumer spending accounts for around 70% of GDP.

The other precious also finished higher, with silver adding 0.4% while platinum and palladium picked up 1.7% and 0.3%, respectively.

At the Comex close: April gold jumped $12.50 to $1,222.60; March silver added nearly 6 cents, to $15.24; April platinum gained $15.70 to $943.50; and March palladium picked up $1.40, to $500.05 an ounce.