Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to finish under $1,222, its lowest close since late February, as the dollar extended its rally on hawkish comments from Fed officials, diminishing demand for alternative stores of value. With U.S. markets closed tomorrow for Good Friday, the metal ended the week down 2.6%.

The dollar rose for a fifth session, climbing 0.2% for its longest streak in nearly a year after another member of the Federal Reserve voiced support for a near-term rate hike. James Bullard of the St. Louis Fed said late yesterday that the next increase "may not be far off," although he'd like to see inflation expectations stabilize first.

Bullard joins fellow Fed officials John Williams, Patrick Harper, and Dennis Lockhart in suggesting this week that another round of tightening may come at one of the next FOMC meetings, perhaps as soon as April. Higher rates boost the dollar by increasing yield, which draws investment by forex traders.

The Fed talk comes with the release of data that qualifies the view that the U.S. economy is gaining momentum. Orders for durable goods fell in February, marking its third month of contraction in the last four. And the Atlanta Fed downgraded its forecast on real GDP growth in the first quarter to just 1.4%.

Pressured by the stronger dollar, the other precious metals also finished lower for the day and week. Silver dropped 0.5% for a weekly loss of 3.9%. Platinum slid 0.9% today and 1.9% this week. And palladium gave up 1.8% for a weekly decline of 3%.

At the Comex close: April gold fell $2.40 to $1,221.60; May silver dropped 7 cents to $15.20; April platinum slid $8.40 to $952.40; and June palladium declined $10.45 to $572.65 an ounce.