Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold close virtually flat today at just above $1,293 as mixed economic data kept markets treading water. The metal finished the week 0.5%, with investors seeking protection from geopolitical instability, especially in the Ukraine, and recent volatility in equities.

U.S. consumer confidence fell unexpectedly in April, bogged down by rising food and energy costs and stagnating wages On the plus side, housing starts jumped more than 13%, led by a 40% surge in multi-family dwellings.

The generally positive trend in economic data is building expectations that the Fed will continue unabated its tapering of bond-buys, known as quantitative easing. QE has boosted gold prices by devaluing the dollar and building the risk of long-term inflation. At the same time, recent comments by Fed Chair Janet Yellen support the view that interest rates will remain near zero until well into 2015 if not longer, which will continue to support higher gold by keeping real rates negative, or close to it.

U.S. stocks rallied late in the session, nudging into the black for the day if not the week. The other precious metals were mixed on the day but uniformly higher for the week. Silver fell 0.8% today but realized a weekly gain of 1.1%. Platinum fell 0.3% but close the week 2.3% higher, and palladium added 0.4% to finish 1.9% higher this week.

At the Comex close: June gold dipped 20 cents to $1,293.40; July silver lost lost 15 cents, to $19.33; July platinum dropped $3.80 to $1,466.10; and June palladium added 0.4%, to $815 an ounce.