Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— With U.S. markets closed for the Martin Luther King, Jr. holiday, gold gained 1.1% in electronic trade, riding momentum from four straight week's of rising prices. Holdings in gold-backed ETFs rose by 7.4 tons on Friday, the most in 15 months, while hedge funds and other large speculators increased their bullish bets to the highest level in eight weeks.

Gold has rebounded 4.4% this year in part because of rising physical demand in Asia. The Shanghai Gold Exchange, the largest bullion market in China, delivered nearly 2,200 tons to buyers last year, nearly double 2012, and the trend is expected to continue.

Physical demand is growing elsewhere, too, behind lingering concerns about global monetary debasement. The U.S. Mint reports sales of 83,500 ounces of Gold Eagle bullion coins so this month, the most since last April. In addition, it has sold almost 40,000 one-ounce Gold Buffalo coins, the most in a year. The British Royal Mint ran out of 2014 gold sovereign coins ten days ago because of "exceptional demand"; Australia's Perth Mint sold 41% more bullion coins in 2013 than the year before; and Turkey's gold imports rose 64% in December to the highest level in six months.

The other precious metals followed gold higher today, with silver adding 1.3% and palladium 0.6% while platinum surged 2.6% because of the threat of strikes at South Africa's largest producers.

In electronic trade: February gold gained $13.90 to $1,254; March silver added 26 cents, 20.31; April platinum surged $37.50 to $1,469; and March palladium climbed 4.65 to $748.60 an ounce.