Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold tumbled 1.6% to close at its lowest level in four weeks as resurgent risk appetite diminished the metal's safe-haven appeal. The S&P 500 and the Dow both closed at record highs after the Commerce Department reported a 3% rise in factory orders in February, driven by surging demand for autos and commercial aircraft. The dollar rallied because of unexpectedly deep contractions in eurozone manufacturing and the anticipation that new monetary easing may be announced at this week�s meeting of the Bank of Japan. A rising dollar pressures gold because it is denominated in dollars internationally, making it more expensive for holder of other currencies. The other precious metals also fell hard, with silver dropping 2.6%, platinum 1.5%, and palladium 1.9%.

At the Comex close: June gold fell $25 to $1,575. May silver dropped 70 cents to $27.25; July platinum shed $24.60 to $1,574.20; and June palladium lost $14.55 to $769.40 an ounce.

Gold imports into Turkey climbed to an eight-month high in March and silver imports rose 31%, according Bloomberg, as the world�s fourth-largest consumer of gold took advantage of lower prices.

Based on U.S Mint sales figures, physical purchases of gold and silver in the U.S. are rising to unprecedented levels, according to Seeking Alpha, on pace to reach new all-time highs. This growth indicates a divergence between the market for paper gold and silver, largely driven by short-term speculation in ETFs, and the demand for physical bullion, mainly purchased by long-term investors. More than 3.3 million ounces of Silver Eagles were purchased in March, ranking 2013 second for demand in March only to 2010, when silver prices were 40% lower. Gold Eagle sales, at 62,000 ounces, softened in March but reached a total of 292,500 ounces for the first quarter, the third-best opening quarter since the bull market began in 2002.