Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.4% in light trading as the dollar rallied on the possibility of more central bank easing. The Bank of Japan is expected to announce $136 billion in new monetary stimulus this week, further devaluing the yen in an attempt to reverse deflationary pressure in the world's third-largest economy. And ministers of the European Central Bank meet this week to discuss, among other matters, cutting interest rates to promote faster growth in the eurozone. With economic confidence rising , most analysts expect the ECB to remain on hold. But traders shifted into dollars on the possibility of a weaker yen and euro. A rising dollar pressures gold because it is denominated in dollars internationally, making it more expensive to holders of foreign currencies. Rising equities also pulled some safe-haven sentiment away from gold and silver while adding to industrial demand for PMGs. Silver dropped 0.7% while sister metals platinum and palladium rose 1.1% and 3.1%, respectively, on improving prospects for auto manufacturing.

At the Comex close: February gold slid $6.70 to $1,655.50; March silver dropped 22 cents to $30.25; April platinum gained $16.80 to $1,600; and March palladium jumped $20.35 to $688.20 an ounce.