Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold dropped 0.6% to close at a three-week low just above $1,281 as rising risk appetite curbed demand for safe havens. The Global Dow added 0.6%, helped by improving consumer confidence in the eurozone. The Dow and S&P 500 each picked up 0.4% after the Richmond Fed manufacturing index swung into positive territory for April, suggesting a turnaround from first-quarter weakness.

Housing data were mixed but showed encouraging signs. Sales of existing homes fell in March for the third straight month, more because of rising mortgage rates and lack of inventory than falling demand. Fewer homes were placed on the market because of the severe winter in many parts of the county. Sales of homes costing $1 million or more increased by 7.8%. Overall, prices rose 6.9% for the twelve months through February, the least in a year but nonetheless beating forecasts for the month.

Traders view the upbeat data as increasing the likelihood that the Fed will further taper monetary stimulus, supporting the dollar and weighing on the price of precious metals and other commodities that are denominated in dollars for international trade. The other metals were mixed, with silver finishing virtually flat while platinum dipped 0.1% and palladium picked up 0.8%.

At the Comex close: June gold fell $7.40 to $1,281.10; May silver added one cent, to $19.36; July platinum dipped 40 cents to $1,400.30; and June gained $5.85 to $783.65.