Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.9% to close above $1,262, its highest finish in more than two months, as a slowdown in U.S. and Chinese factory output stimulated safe-haven buying. China's manufacturing contracted for the first time in six months, according to Markit Economics and HSBS Holdings, signaling surprising weakness in the world's second largest economy. U.S. PMI also showed slower growth in manufacturing for the first time in three months

The soft data pushed the dollar lower and risk appetite tumbled in most markets. The Dow dropped nearly 1.1% and the Global Dow shed 0.6% while U.S. Treasury bonds rallied strongly, pushing yields to their lowest level since before December's announcement by the Fed that it would taper quantitative easing. The other metals were mostly higher, with silver climbing nearly 1% and platinum inching up 0.1%. Palladium was the outlier, slipping 0.4%

At the Comex close: February delivery GCG4 +2.06% jumped $23.70, or 1.9%, to settle at $1,262.30; March silver climbed 17 cents to $20.01; April platinum added 80 cents, to $1,463.20; and March palladium slipped $2.95 to $745.90 an ounce.