Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.8%, to close above $1,308 as escalating tensions between Russia and the Ukraine stoked safe-haven demand. It was the metal's biggest one-day gain in six weeks and its first close over $1,300 in more than a week.

Poland's prime minster warned that risk of a Russian invasion of the Ukraine has increased in recent days. Citing new intelligence, NATO officials told media organizations that Putin may be planning a Crimea-style intervention under the guise of a peace-keeping mission after amassing 20,000 troops with artillery and air support on the border. Increasingly belligerent, Putin has also promised retaliatory measures in response to sanctions against Russian industries by the U.S. and E.U.

Boosted by concerns about Russia, the dollar strengthened against most major rivals, especially the euro, which fell to a nine-month low after Italy slipped into recession for the third time in six years. Treasury bonds gained alongside gold on flights to safety. Asian and European stocks fell while the Dow edged up on reports that the U.S. trade deficit shrank to a five-month low on reduced oil imports.

The other precious metals followed gold's lead. Silver jumped 1% while platinum gained 0.6% and palladium inched up less than 0.1%.

At the Comex close: December gold surged 22.90 to $1,308.20; September silver jumped 19 cents to $20.02; October platinum gained $9.30 to $1,465.20; and September palladium inched up 55 cents to $848.90 an ounce.