Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% in choppy trade after mixed U.S. economic data sapped an early rally. Sales of existing homes tumbled by 4.3% in December for the first decline since August. The news triggered some safe-haven gold buying, driving the price $9 higher to $1,664. But subsequent reports that orders for durable goods soared 4.6% in December, far more than expected, and factory activity in the Dallas Fed region spiked higher for the second straight month, bouying the dollar and pulling precious metals lower. Silver dropped 1.4% and platinum fell 1.9%. Palladium, supported by a report from Johnson-Matthey that Russian supplies are all but exhausted, dipped just 0.1%

At the Comex close: February gold dipped $3.70 to $1,652.90; March silver lost 43 cents to $30.78; April platinum fell $32.70 to $1,662.20; and March palladium dipped 45 cents to $740.55 an ounce.

Central banks continue to be net buyers of gold as they seek to diversify their currency reserves away from dollars and euros. According to IMF data, Russia added 2.1% in December, bringing its reserves to nearly 960 metric tons; Khazakstan added 1.7%, raising its reserves to over 115 tons; and Turkey was the biggest buyer, expanding its holdings by almost 15% to just under 360 tons. Central banks bought more than 450 tons in 2011 and 2012, according to the World Gold Council, and are expected to continue the trend in 2013.