Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5%, closing at a two-week high above $1,260, as U.S. equities stalled and inflation risk crept up in China and Europe. After setting a series of record highs over the past week, the Dow and S&P 500 finished virtually flat as traders shifted some profits toward cash and gold, the latter considered undervalued after its recent slide. The dollar gained against most rivals, especially the eruo, making the metal's advance all the more impressive because a rising buck typically weighs on the gold price.

Gold received additional support from reports that Chinese inflation accelerated at its fastest pace in four months on rising food costs, pushing Asian investors toward inflation hedges. And last week's historic announcement by the ECB that it will cut its deposit rate to negative, a first for a central bank, and further loosen monetary policy is expected by gold traders to increase demand for alternative stores of value in the Eurozone.

The other precious metals followed gold higher, with silver also picking up 0.5%. Platinum surged 1.9% and palladium jumped 1.5% to its highest level in more than three years after talks to end the five-month strike in South Africa fell apart.

At the Comex close: August gold gained $6.20 to $1,260.10; July silver climbed 10 cents to $19.17; July platinum surged $27.90 to $1,482.20; and September palladium jumped $12.95 to $854.55 an ounce.