Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained for an eight straight day, jumping 1.4% to close above $1,318, as yet more soft economic data spurred safe-haven demand. U.S. factory production tumbled unexpectedly in January, falling by the most since in nearly four years and raising more questions about the strength of the recovery. The Philadelphia Fed cut its forecast for first-quarter U.S. growth from 2.5% to 2%. The dollar retreated on the data, supporting higher prices for precious metals and other commodities denominated in dollars for intentional trade.

Gold finished the week 4.4% higher for its biggest weekly gain in six months and is trading once more above its 200-day moving average, which is around $1,309. Its 9.7% rise so far this year is causing traders to dive back into bullion-backed ETPs. SPDR Gold Fund, the largest gold ETF, saw holdings spike this week to the highest level in two months, including a nearly 1% surge yesterday alone.

The other precious metals are also estabishing impressive momemtum. Silver surged 5% today to its highest level since November, up 7.5% this week and 10% this year. Platinum added 1% for a weekly gain of 3.7%, while palladium picked up 0.9% today for a weekly increase of 4.1%.

At the Comex close: April gold jumped $18.50 to $1,318.60; March silver surged $1.03, to $21.42; April platinum added $13.50, to $1,430.10; and March palladium gained $6.50 to $737.60 an ounce.