Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold rose for the fourth session out of the last five, climbing 0.1% to settle at a two-week high above $1,261, as softer data on U.S. and global growth boosted safe-haven demand.

The World Bank lowered its global growth forecast to 2.8% from 3.2% for 2014 because of rising geopolitical conflict and the specter of higher interest rates. The projected weakness is considered a positive for gold insofar as it will encourage central banks to maintain or expand their easy money policies, devaluing currencies and spurring demand for alternative stores of value.

In addition, the Commerce Departments quarterly survey of healthcare spending data, considered a bellwether of economic expansion, indicated that the U.S. economy contracted 1.7% in the first quarter, much more than the 1% originally thought.

The weaker economic news pulled equities lower, with the Dow falling 0.6% and the Global Dow 0.3%. The dollar slipped against major rivals. The other metals were mixed. Silver finished flat and platinum dipped 0.1% while palladium added 0.7%, hitting a 13-year high, because of the ongoing South African strike.

At the Comex close: August gold gained $1.10 to $1,261.20; July silver stayed at $19.17 July platinum dipped $1.10 to $1,481.10; and September palladium added $5.60, to $860.15 an ounce.