Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Adding to last week's 2.5% rise, gold rallied another 1.4% to close at a one-month high near $1,232 as crumbling oil prices dragged down equities, boosting demand for safe havens.

Oil prices fell more than 5% to six-year lows under $46 per barrel after Goldman Sachs and SocGen lowered their price-forecasts in light of OPEC's refusal to cut production levels, rising U.S. output, and slowing global economic growth. Prince Alwaleed bin Talal of Saudi Arabia, the world's largest oil producer, said prices would never again top $100.

U.S. equities traded lower as falling oil pressured energy shares, with the Dow slipping 0.5% and the S&P 500 losing 0.8%. Traders shifted into U.S. Treasury bonds and precious metals on flights to safety, driving yields on 30-year Treasuries to the lowest level since July 2012. Silver and platinum gained 0.9% while palladium jumped 1.7%, its biggest one-day rise in more than six weeks.

Gold was further supported by follow-through bids after Friday's non-farm payrolls report showed U.S. wages falling in December by the most since 2006, reducing pressure on the Fed to raise interest rates. Higher rates would strengthen the dollar and weigh on gold, which is denominated in dollars for international trade, by making it more expensive to users of other currencies.

At the Comex close: February gold gained $16.70 to $1,232.80; March silver futures added 15 cents, to $16.56; April platinum rose gained $11.07 to $1,241; and March palladium jumped $13.61 to $814.10 an ounce.