Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.1% to close at $1,222 while equities edged higher as traders remain cautious about the prospects for rate hikes from the Federal Reserve.

Several Fed officials suggested last week that momentum in the economy could warrant a quarter-point rate hike in the next few months. The talk sent gold roughly 3% lower for the week through Thursday, with markets closed for the Good Friday holiday.

New data from the Commerce Department, however, paint an economy still in search of direction. Consumer spending came in weaker than expected, barely rising in February after being revised lower in January.

In addition, the deficit in trade goods rose last month, signaling ongoing softness in manufacturing. And perhaps most important to Fed members, their preferred measure of inflation, the PCE index, eased to merely 1% in the 12 months through February. The Fed's target is 2%.

Last week the Atlanta Fed downgraded their forecast for real GDP growth in the first quarter to just 1.4%.

The conflicting signals are causing confusion among traders, who cautiously await speeches this week from Fed Chair Janet Yellen and New York Fed President William Dudley for clues on the timing of the next rate hike. Friday's nonfarm payrolls report will also be a weathervane.

The Dow and Global Dow both crept higher, adding 0.1% and 0.3%, respectively, while the dollar rolled back 0.3% after five straight winning sessions.

The other precious metals also finished lower, with silver slipping less than 0.1% while platinum and palladium dropped 0.8% and 1%, respectively.

At the Comex close: June gold dipped $1.50 to $1,222; May silver edged down one cent to $15.19; July platinum slid $7.30 to $946.20; and June palladium lost $5.65 to $567 an ounce.