Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— With U.S. markets closed for Presidents Day, gold extended last week's 4.1% rally by jumping 0.7% in electronic trade to $1,329, its highest level in more than three months, as worries about the U.S. recovery continue to stoke safe-haven demand. The dollar slipped further against most major rivals, with traders weighing a downtrend in recent data including flat consumer sentiment, a 0.4% drop in retail sales, and a 0.3% reduction in factory output last month. A falling dollar supports higher prices for gold and other commodities denominated in dollars for international trade by making them less expensive for holders of other currencies.

The other precious metals tracked gold higher in electronic trade. Silver picked up more than 1.5% to $21.82; platinum added 0.2% to $1,430; and palladium picked up 0.4% to $740.