Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold slipped 0.3% to settle just above $1,320, snapping a nine-session winning streak as tame data on wholesale prices lowered demand for the metal as an inflation hedge. The U.S. producers price index crept up 0.2% in January for a 1.2% rise over the past twelve months, indicating little pressure on prices in the broader economy.

Gold was further pressured by the release of the minutes of the last Fed meeting showing disagreement over when to increase key interest rates. The central bank remained committed to reductions in quantitative easing, its monthly bond-buying program that has spurred higher gold prices by undermining the dollar and raising the risk of long-term inflation. The Fed also expects to hold interest rates at current levels until well-past the established threshold of 6.5% unemployment. The dollar strengthened slightly after the Fed minutes. A stronger dollar weighs on commodities that are denominated in dollars for international trade by making them more expensive for holders of other currencies.

The other precious metals were mostly down, with silver dipping 0.2% to end an 11-session winning streak, its longest in more than 30 years. Platinum finished unchanged while palladium also dropped 0.2%.

At the Comex close: April gold slipped $4 to $1,320.40; March silver dropped 5 cents, or to $21.85; April platinum stayed at $1,424.50; and March palladium dipped $1.75 to $735.40 an ounce.