Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.4% to close above $1,270 as a weaker dollar and ongoing tensions between Russia and the Ukraine brought bargain-hunters into the market after yesterday's 1.7% drop.

Russia's President Putin floated ideas for a ceasefire in the Ukraine, causing gold to dip to $1,262 early in the session on diminishing safe-haven bids. However, the metal rebounded strongly after Ukraine's President Poroshenko all but dismissed the overture as dissembling in advance of NATO's meeting this week.

The dollar fell against most rivals, supporting precious metals and other commodities denominated in it for international trade by making them less expensive to foreign buyers. Silver rose 0.2% and platinum added 0.3% while palladium fell 0.8% on prospects for reduced sanctions against Russia, the world's leading producer, if a ceasefire comes to pass.

At the Comex close: December gold gained $5.30 to $1,270.30 ; September silver rose 4 cents to $19.11; October platinum added $3.60, to settle at $1,412.50; and December palladium fell $7.30 to $875.95 an ounce.