Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold ended barely lower today, dropping 0.1%, as equities rallied strongly and risk appetite returned to the market. Following last Friday's poor jobs report, gold began to decouple from equities, gaining nearly 3% over four days while stocks lost heavily. For much of the year, gold has traded as commodity, tracking risk assets higher. But that seem to be changing as gold resumes its typical role as a safe haven. Silver and platinum lost 0.5% while palladium lost 0.3%.

At the close: June gold dipped 40 to $1,660.30; May silver fell 16 cents to $31.52; July platinum slid $9.40 to $1,584.30; and June palladium lost 25 cents to $636.60 an ounce.

Demand for physical gold is soaring. Reuters reports that Hong Kong's gold exports to China increased by 20% in February, driven increased Central Bank buying. China's rising inflation rate, which came in at a surprising 3.6% last month, is also causing private investors to seek out inflation hedges. And precious metals consultancy GFMS reported today that global demand for gold bars surged 37% last year to a new record of 1,209 tons. This growth was the result of "strong demand for physical gold as a store of value in China and India as well as safe haven interest from western investors," the report said. Gold bar demand from China alone rose 40% in 2011. GFMS expects this trend to continue in 2012 as physical demand for gold from emerging markets continues to grow, pushing gold prices over $2,000 this year.