Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinAfter a turbulent morning session, where gold briefly slid under $1680 ahead of the European Central Bank announcement on interest rate policy, it ended the day firmly higher, finishing up 0.8% at $1,713.40 per ounce.

Gold climbed back above $1700 support after the ECB confirmed a 50-basis point interest rate hike, which strengthened the Euro and put pressure on the dollar and US Treasury yields by narrowing the interest rate differential between the US and the Eurozone; this, in turn, buoyed precious metals prices. Although the Euro strength proved to be short-lived because of higher debt service concerns for some Eurozone members, gold remained firmly higher throughout the day, supported buy lower US Treasury yields.

Silver made a strong reversal as well. Trading as low as $18.12 on the September contract prior to the ECB announcement, silver punched sharply higher to close the New York session at $18.67.

Gold led the other precious metals higher on the day. Silver tacked on 0.2%, platinum added 1.4%, and palladium rose another 0.8%.

At the Comex close: August gold added $13.20 to $1,713.40; September silver picked up the nickel it lost yesterday and returned to $18.72; October platinum increased $12.20 to $858.70; and September palladium added $15.10 to close at $1,876.70 an ounce.