Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.4% to close just under $1,373 after lighter-than-expected sanctions against Russia renewed risk appetite and encouraged traders to take profits from last week's 3% rise. Early in the session gold reached a new six-month high of $1,383 before rolling back. The other precious metals were mostly weaker with silver dropping 0.6% and platinum 0.1% while palladium bucked the trend by adding 0.4%.

In response to yesterday's staged vote in the Crimea, the White House froze assets and banned visas of 11 senior Russian government officials. The European Union sanctioned 21 officials in Russia and the Crimea. Practically devoid of real economic impact, the mild penalties brought relief to U.S. and global equities markets that were bracing for more injurious measures, helping the Dow to jump 1% from a three-week low and the Global Dow to gain 0.7%.

Some positive economic reports also weighed on gold's safe-haven appeal. U.S. factory output rose in February by the most in six months; the New York Fed's gauge of business conditions perked up in March; and home-builder confidence also edged up. After a wave of weakness in the past two months, the improving data is likely to prompt the Fed to continue tapering its bond-buying program, known as quantitative easing, when it meets this week. Tantamount to printing money, QE has spurred higher gold prices by devaluing the dollar and increasing the risk of long-term inflation.

At the Comex close: April gold slipped $6.10 to $1,372.90; May silver dropped 14 cents to $21.275; April platinum dipped $1.20 to $1,468.40; and June palladium picked up $3.15 to $776.40 an ounce.