Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold railled 1.7%, recouping its losses from the previous session and then some, as the dollar weakened behind improving eurozone sentiment. German industrial production rose 1.2% in March, far more than expected, fueling hopes that Europe's largest economy may begin to pull the region towards growth. The euro rallied by the most in three weeks and the dollar fell against a basket of rivals. A falling dollar supports higher prices for gold and other precious metals because they are denominated in dollars internationally and become less expensive to holders of foreign currencies. Gold's close near $1,474 was its highest in nearly a month. The other metals followed suit, with silver gaining 0.5%, platinum 1.6%, and palladium 2.6%.

At the Comex close: June gold rallied $24.90 to $1,473.70; July silver added 12 cents to $23.93; July platinum rose by $23.70 to $1,504.90; and June palladium gained $17.65 to $698.25 an ounce.

Gold was also supported by continuing momentum in Asian physical demand. Gold bullion purchases in India, the world's largest gold consumer, are projected to exceed 100 tons in May, following the same amount in April. Chinese bullion imports from Hong Kong, its trading conduit for gold, more than doubled in March to an all-time of more than 223 tons. Gold consumption in China rose 26% during the first quarter compared to a year earlier. This trend is expected to continue in the world's second-largest gold-consuming nation.