Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid 0.4% to close below $1,258 as risk appetite crept back into the markets and traders took profits from last week's 4.1% rally. The metal remains 19% higher for the year, enjoying best annual start since 1974.

Equities climbed in the U.S. and Europe, with the S&P 500 and Stoxx 600 rising more than 0.4%, as oil prices rallied another 5%, boosting energy and materials shares. Brent crude moved back above $40 a barrel, its highest level this year, on speculation that the world's largest exporters will agree to freeze production.

Risk appetite was also whetted by anticipation of additional monetary from the ECB when it meets tomorrow After price growth in the Eurozone turned negative in February, the European Central Bank is widely expected to do all it can to fight deflation, including further cuts to deposit rates and deeper quantitative easing, its Fed-style program of increasing liquidity by buying bonds.

The dollar jumped against the euro and traded higher against most of its G-10 rivals, pressuring gold and other commodities denominated in it for international trade.

The other precious metals tracked lower with gold. Silver dipped 0.2% while platinum and palladium fell 0.7% and 0.1%, respectively.

At the Comex close: April gold slid $5.50; May silver dropped 3 cents to $15.37; April platinum fell $6.60 to $982.80; and June palladium dipped 70 cents to $566.15 an ounce.