Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.4% in choppy trade, closing at a two-month low above $1,196 as the dollar rallied further against the euro, reducing demand for alternative stores of value.

The ECB announced the details of its trillion-euro stimulus plan today, driving the euro to its lowest level against the dollar in more than eleven years. Tantamount to printing money, the Fed-style program of quantitative easing will flood the Eurozone with liquidity in an effort to generate growth and overcome deflation. The program will run monthly through September 2016, longer if needs be.

Gold initially rose as high as $1,209 in intraday trade as another wave of soft U.S. economic data raised speculation that the Fed will postpone hiking interest rates until late this year. Factory orders fell for the sixth straight month behind slack demand in Europe and Asia, and the adverse effects of a stronger dollar on U.S. exports. Productivity fell at a 2.2% annual rate in the fourth quarter, according to new government data, revised down from the 1.8% originally estimated by the Labor Department..

Jobless claims rose last week to the highest level in nine months at 320,000, raising questions about the ongoing health of the labor markets. Tomorrow's release of the nonfarm payrolls report should shed further light on this crucial element of the recovery, and possibly influence the Fed's position on rates.

The other precious metals were mostly lower. Silver finished flat while platinum edged down 0.1% and palladium lost nearly 0.6%.

At the Comex close: April gold fell $4.70 to $1,196.20; May silver was unchanged at $16.158; April platinum edged down $1.60 to $1,180.10; and June palladium lost $5.60 to $825.05 an ounce.