Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.2% to close under $1,074 as rebounding oil prices stoked risk-appetite, rallying stocks and reducing demand for safe havens.

After dropping under $30 on worries about Iranian production re-entering the market after the loosening of sanctions, oil recovered late in the session, gaining more than 2% to push back above $31 per barrel.

While crudes' gains were largely fueled by traders covering shorts, they were enough to boost energy stocks and feed-risk-appetite, driving U.S. equity indexes strongly higher. The Dow jumped nearly 230 points, or around 1.4%, while the S&P 500 added 1.7%.

The dollar tracked higher with rising risk appetite as traders exited the yen and euro, pressuring gold and other commodities denominated in the currency for international trade. Treasury prices fell and yields rose for the first time in three sessions.

The markets largely overlooked data from the Labor Department showing import prices fell sharply again in December, plunging 1.2% because of crumbling energy prices and the strong dollar. Import prices have now dropped in 16 of the last 18 months, adding to concerns about global deflation.

St. Louis Fed President James Bullard said today that further rate hikes may be hard to justify, given the "worrisome" drop in U.S. inflation expectations.

The other precious metals were mostly lower, with silver and platinum sliding 2.9% and 1.9% while outlier palladium added 1%.

At the Comex close: February gold fell $13.50 to $1,073.60; March silver gave up 41 cents, to $13.75; April platinum slid $16.50 to $834.80; March palladium added $4.60, to $491.25 an ounce.