Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold jumped another 1.5% to close above $3,431 as escalating violence between Israel and Iran drove investors into safe havens. Bullion gained 3.3% for the week. Silver added 0.7% for the day and week to finish at $36.28 an ounce.

Israel launched additional strikes against Iranian nuclear facilities and military personnel today, dramatically increasing the risk of all out warfare in the region. Iran reported it has fired missiles into Israel in retaliation.

All three major US stock indexes lost at least 1.2% and global equities also sold off as investors shed risk.

The dollar rose 0.2% against major rivals, buoyed by flights to safety. Benchmark 10-year Treasury yields rose, however, as investors demanded additional compensation for taking on the risk of US sovereign debt.

Typically, yields drop during flights to safety as investors pile into US government bonds. But global investors decreasingly view the US as a safe place for money, given our drastic fiscal and political problems.

Oil rocketed 8.5% higher on concerns that the Iran-Israel conflict could reduce crude production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Platinum fell 6.2% but still rose 3.8% for the week. Palladium dropped 2.8% today and 1% this week.

The New York spot close: gold gained $50.30 to $3,431.20; silver rose 7 cents to $36.28; platinum tumbled $79.60 to $1,210.80; and palladium shed $23.15 to $1,041.25 an ounce.