Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped for a second day, dropping 0.3% to close just under $1,317, as soft manufacturing reports in China and the eurozone combined with mildly upbeat U.S. data to boost the dollar, reducing demand for gold as an alternative store of value.

Factory output in China dropped to a seven-month low in February, causing the yuan to plunge as financial stresses in the world's second-largest economy impair the outlook for growth. Eurozone manufacturing also dropped while service industries grew less than expected, raising concerns that recovery is stagnating in the region.

U.S. data was mixed with a bias toward positive. The Markit flash PMI, an early sign of manufacturing activity, jumped to a four-year high in February; jobless claims receded slightly; and an index of leading economic indicators crept up 0.3% in January. But the Philadelphia Fed region reported a sharp, unexpected contraction in manufacturing this month, contradicting the national PMI report.

The dollar rose against most major rivals, pressuring precious metals and other commodities denominated in dollars for international trade. Silver and platinum both fell 0.8% while palladium inched up 0.1%.

At the Comex close: April gold fell $3.50 to $1,316.90; March silver lost 17 cents to $21.68; April platinum dropped $12 to $1,412.50; and March palladium picked up 90 cents to $736.30 an ounce.