Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.4%, rebounding after yesterday's 1.8% sell-off as bargain-hunters chased lower prices. New claims for unemployment benefits fell sharply last week, raising hopes that the U.S. job market and economic recovery may be stabilizing. Returning risk-appetite propelled the Dow and S&P 500 to fresh record-highs while the dollar, considered a safe-haven asset, fell against most major rivals. A falling dollar supports higher gold prices because gold is denominated in dollars internationally and becomes less expensive to holders of other currencies. The other precious metals also rose, with silver adding 0.2%, platinum 0.4%, and palladium 1.7%.

At the Comex close: June gold gained $6.10 to $1,564.90; May silver added 4 cents, to $27.70; July platinum picked up $6 to $1,535.80; and June palladium rallied $12.50 to $733.35 an ounce.

Chinese gold exports from Hong Kong jumped almost 90% in February as lower prices attracted jewelry buyers and investors. The second-largest gold consumer behind India, China bought 97 metric tons, up from 51 tons in January. Physical gold demand is rising in Asia and is expected to put a floor under global bullion prices as individuals and central banks, especially in emerging markets, seek protection from inflation and currency risk in the dollar and euro. Indian gold purchases jumped 41% in the fourth quarter of last year, after three straight quarters of decline, and are expected to rise by 11% overall in 2013, according to World Gold Council statistics.