Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 1%, extending last week's 4.2% rally, on expectations of deeper monetary easing at home and abroad. Low consumer inflation and a clearly slowing economy have increased the likelihood that the Fed will extend quantitative easing at its meeting this week. Similarly, with the eurozone mired in an intractable recession, the ECB is expected to slash interest rates and entertain other nontraditional solutions like quantitative easing when it meets on Thursday. Tantamount to printing money, these ultra-accommodative monetary policies devalue currencies and stimulate safe-haven demand for gold as an alternative store of value.

Rising for the sixth session out of the last eight, gold was also pulled higher by a falling dollar and rallies in commodities and equities, driven by the expectation of more central bank liquidity. The Dow picked up 100 points and the Global Dow rose nearly 1% while oil and the Goldman Sachs S&P Index of commodities added nearly 1.5%. Silver tacked on 1.4% while platinum and palladium jumped 2.1% and 2.5%, respectively.

At the Comex close: June gold gained $13.80 to $1,467.40; July silver rose by 38 cents to $24.17; July platinum added $30.90, to $1,507.40; and June palladium picked up $17.25 to $699.20 an ounce.