Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% to close under $1,600 as serenity in Cyprus and mixed U.S. economic data caused traders to take profits from the recent rally, squaring quarterly books before the Good Friday market holiday. Cypriot banks reopened with surprisingly little panic after a closure of nearly two weeks. Expecting massive capital outflows, the government placed strict limits on withdrawals, allowing only $385 in cash per day. The relative quiet in Cyprus combined with unexpectedly strong German retail data to improve investor sentiment and push European stocks higher. But it may be the calm before the storm. Moody�s reduced its sovereign bond rating to Caa2, subprime and extremely speculative, on the growing risk that the nation will still exit the euro, a sentiment shared by many analysts despite this week�s controversial bailout.

Encouraged by a slight upward revision economic growth for the fourth quarter, from 0.1% to 0.4%, the S&P 500 closed at a new all-time high above 1,569. Risk-appetite was curbed, however by modestly rising jobless claims and falling consumer confidence, which sank to its lowest level since early February because of looming federal budget cuts. Gold rallied 1.1% in March, closing the quarter with positive momentum despite falling 4.8% overall. Silver gave up 1% today, 0.4% for the month, and lost 6.3% for the quarter. Platinum dropped 0.6% for the day and the month, but gained 2.1% for the quarter. And palladium finished near-flat today but rose 4.6% in March and a whopping 9.2% for the quarter.

At the Comex close: June gold fell $11.50 to $1,595.70; May silver slipped 29 cents to $28.32; July platinum lost $8.90 to $1,574.60; June palladium dipped 5 cents to $768.25 an ounce.