Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold rose almost 1%, gaining 2.3% in the last three sessions, as deeper global easing spurred demand for bullion as a hedge against currency devaluation and inflation. Japan's aggressive expansion of quantitative easing, announced last week, will double its monetary base and pump an additional $1.4 trillion into its�and the world's�economy over the next two years. Other central banks, including the Fed, are expected to feel pressure to follow suit in order to keep their currencies competitive for global trade. Falling inflation in China is seen extending low interest rates in the world's second-largest economy.

The dollar pulled back against its major rivals, supporting higher prices for commodities and precious metals, after last Friday's deeply disappointing jobs report raised the likelihood that U.S. quantitative easing will be extended through the end of the year. This week's release of minutes from the recent FOMC meeting should provide more direction on monetary policy. The anticipation of more liquidity helped to push the Dow to a new intraday record-high and the Global Dow nearly 1.4% higher. Silver rallied 2.7% while platinum and palladium added 1.1% and 0.4%, respectively.

At the Comex close: June gold rose $14.20 to $1,586.70; May silver rallied 74 cents to $27.88; July platinum gained $16.10 to $1,553.10; and June palladium picked up $3.20, to $733 an ounce.