Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold lost 1.9% to settle at a five-week low of $1,311 as worries persist that the Fed may tighten interest rates sooner than previous thought. Data indicating that China's manufacturing weakened for the fifth straight month in March also weighed on gold by undermining demand for most commodities. Silver fell 1.2% and platinum slipped by 0.3%. Palladium bucked the trend, climbing 0.6% behind ongoing strikes and next week's launch of a palladium-backed ETF in South Africa.

Speaking to the press last week after the FOMC meeting, Fed Chair Janet Yellen suggested that rates could rise some six months after the Fed's bond-buying program, known as quantitative easing, concludes around October. Although San Francisco Fed President John Williams has since denied that Yellen meant to signify a change in policy, hedge funds and other large speculators have nonetheless been quick to take profits from gold's strong recent rally. The metal closed at a six-month high near $1,380 ten days ago. Higher interest rates weigh on the gold price by boosting the dollar and increasing the yield on fixed-income investments, diminishing gold's attraction as an alterative store of value.

At the Comex close: April lost $24.80 to $1,311.20; May silver dropped 24 cents to $20.07; April platinum slipped $4.80 to $1,431.20; June palladium picked up $5.05 to $794.35 an ounce.