Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slid another 0.8% to close below $1,331, its lowest level since late February, as market concerns about rising interest rates combined with upbeat U.S. data to reduce safe-haven demand. Silver fell harder, losing another 1.9%. Both metals have fallen in four straight sessions, giving back all of last week's Crimea-inspired rally. Platinum dropped 1.2% while palladium bucked the trend by adding 0.5%.

Still digesting yesterday's comment by Fed Chair Janet Yellen that rates could begin to rise "around six months" after the projected end of quantitative easing in October, traders continued to shift from Treasurys and commodities, both of which tend to fall when the dollar strengthens. Since 2008, near-zero rates have supported higher precious metals prices by devaluing the dollar and flooding the markets with cheap liquidity.

Gold came under additional pressure after the release of new economic data. The Conference Board reported that leading economic indicators rose in February by more than expected; and the Philadelphia Fed region showed manufacturing sentiment rebounding in March after falling strongly in February. This positive news offset a report that sales of existing homes fell in February to the lowest level since July 2012. The Dow and S&P 500 each gained more than 0.5%.

At the Comex close: April gold fell $10.80 to $1,330.50; May silver dropped 40 cents to $20.43; April platinum lost $16.90 to $1,434.80; and June palladium added $3.45, to $771.65 an ounce.