Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold edged up another 0.1%, extending last week's 3.3% rally to close above $1,318, as the dollar fell for the fourth straight session against a basket of major rivals. The dollar's weakness follows last week's dovish Fed statement indicating that interest rates will stay near zero until well into next year and hit a lower ceiling when they do rise. A falling dollar makes gold less expensive to holders of other currencies because the metal is denominated in dollars for international trade.

Gold was also supported, and the dollar weakened, by strong manufacturing data in China signaling expansion for the first time since December and raising hopes that the world's second-largest economy is getting back on track. China is the world's leading gold consuming nation; renewed economic vigor is expected to boost demand for the metal as a store of wealth and hedge against inflation among China's burgeoning middle class.

The other precious metals were mixed. Silver and platinum shed 0.2% and 0.1%, respectively, while palladium inched up 0.1%.

At the Comex close: August gold edged up $1.80 to $1,318.40; July dipped 3 cents to $20.92; July platinum lost 70 cents to $1,456.60; and September palladium picked up added 45 cents to $822.65 an ounce.