Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.3% to close above $1,258, its highest finish in more than a year, after another spate of disappointing U.S. economic data eroded the dollar and boosted demand for safe-haven assets. It was gold's first close above resistance at the $1,250 mark since early February 2015.

With its 50-day moving average rising above its 200-day for the first time in 18 months, gold has achieved the so-called "Golden Cross," a bullish technical event signaling strong momentum to the upside.

The metal has gained more than 17% so far this year as slow growth in China, Europe, Japan, and the U.S. has rocked equity markets and lessened the likelihood of tighter monetary policy from the Federal Reserve.

The ISM reported today that the U.S. services sector barely expanded in February and has grown by less each month for the past five. A separate report from Markit was even weaker, showing services in contraction for the first time in 29 months, with optimism about growth at its lowest in nearly six years. Services constitute around 90% of GDP.

Jobless claims rose by 6,000 last week but remain near post-recession lows.

The dollar weakened against major rivals, with the Dollar Index dropping 0.6% as traders speculated the soft services data will keep the Fed from raising rates soon. Dallas Fed President said today that the central bank "needs to show patience in decisions to remove accommodation."

The other precious metals all finished higher, with silver rising 0.8% while platinum picked up 0.7% and palladium jumped 5.2%.

At the Comex close: April gold surged $16.40 to $1,258.20; May silver picked up 12 cents, to $15.146; April platinum climbed $6.50 to $942.70; and June palladium jumped $26.90 to $542.20 an ounce.