Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold picked up 0.3% to close above $1,303 after dovish comments by Fed Chair Janet Yellen raised speculation that near-zero interest rates will continue for at least two more years.

Speaking in New York, Yellen cited current shortfalls in the economy and noted that the Fed's goals for employment and inflation are unlikely to be met before late 2016. She emphasized the FOMC's commitment "to maintain the appropriate degree of accommodation to support the recovery." Near-zero rates have boosted gold by flooding the economy with cheap liquidity. Last month, Yellen caused gold prices to fall by suggesting that rates could rise as early as next year.

Gold's gains came despitea stronger dollar and rallying equity markets, both of which were supported by better-than-forecast U.S. industrial production in March. AA rising dollar typically weighs on precious metals and other commodities denominated in dollars by making them more expensive to holders of other currencies. The Dow, S&P 500, and Global Dow all gained 1%. The other metals were mostly higher, with silver and palladium adding 0.7% and 0.8%, respectively, while palladium dropped 0.5%.

At the Comex close: June gold picked up $3.20, to $1,303.50; May silver added 14 cents, to $19.63; July platinum dropped $6.80 to $1,437.80; and June palladium climbed $6.40 to $802.30 an ounce.