Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Extending last week's 1.7% rally, gold jumped another 1.1% today to close at $1,258 as doubts about the pace of Fed rate hikes weakened the dollar, boosting demand for alternative stores of value.

The U.S. Dollar Index, a measure of the currency against a basket of major rivals, dropped another 0.4% to its lowest level in more than eight months. After brief rising from an 18-month low against the yen, the buck renewed its decline on speculation that the Federal Reserve will only raise rate once this year, if at all.

Last week's release of the minutes from the Fed's March meeting underscored the cautious approach to monetary policy advocated recently by Fed Chair Janet Yellen. Slowing global growth and low inflation have increased risks to the U.S. outlook, Yellen said in a recent speech, and demand a slower pace for rate hikes.

A recent spate of weaker U.S. economic reports, including soft trade data, factory output, and consumer sentiment, have also pushed back the horizon for the next rate increase.

A falling dollar supports higher prices for gold and other commodities denominated in it for international trade by making them less expensive overseas.

The other precious metals also finished higher, with soaring 3.9% while platinum and palladium climbed 2.3% and 1.3%, resepectivley.

At the Comex close: June gold gained $14.20 to $1,258; May silver soared 60 cents to $15.98; July platinum jumped $22.40 to $990.80; and June palladium added $6.85, to $545.50 an ounce.