Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Extending yesterday's 1.4% rally, gold added another 0.3% to close above $1,078 as investors sought safety from China's stumbling stock markets and growing tensions in the Middle East. It was gold's highest close in two weeks.

Following yesterday's 7% plunge in the Shanghai Composite Index, triggered by contracting manufacturing and slower growth in the world's second-largest economy, the PBOC pumped nearly $20 billion into China's financial markets to prop up the yuan. Global investors were little mollified, however, as risk-off sentiment continued in most markets.

Geopolitical concerns boosted gold's safe-haven appeal as saber-rattling deepened between Iran and Saudi Arabia following the Saudi's mass execution of 45 Shiite prisoners, including a popular cleric. The escalating conflict threatens to derail plans for stopping ISIS in Syria and further destabilize the volatile region.

Gold's gains were capped by a rising dollar, which picked up 0.6% against a basket of rivals on generally weaker economic data in Asia and Europe. A stronger dollar typically weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

The other precious metals finished mostly higher, with silver and platinum adding 1% and 0.6%, respectively, while outlier palladium lost 1.6%.

At the Comex close: February gold added $3.20, to $1,078.40; March silver picked up 15 cents to $13.99; April platinum gained $5.50 to $890; and March palladium fell $8.45 to $535.75 an ounce.