Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold added another 0.2% to close at $1,322 as a falling dollar continued to spur demand for alternative stores of value. In an impressive run, the yellow metal gained 6.1% this month for its biggest monthly rise since February, and 3% this quarter for its second-straight quarterly win. Driven by nagging worries about the U.S. economy and geopolitical instability in Iraq and the Ukraine, it has now finished higher in fourteen of the last sixteen sessions.

The dollar continued its slide against most major rivals, with ICE dollar index falling to a six-week low as traders speculate that interest rates will remain near zero for longer than previously expected. After last week's report that the economy contracted by a staggering 2.9% during the first quarter, Fed Chair Janet Yellen emphasized the need for continued accommodation in monetary policy. San Francisco Fed President John Williams today advocated holding rates steady until late 2015. A weaker dollar boosts gold in part because the metal is denominated in dollars internationally and becomes less expensive to foreign buyers.

The other precious metals were mixed on the day but uniformly higher for the month and quarter. Silver slipped 0.4% today but gained 13% in June and 6% this quarter. Platinum tacked on 0.2% for a 2.1% monthly rise and a 4.4% quarterly one. Palladium inched up slightly today to end up 0.8% in June and 8.5% this quarter, assisted by protracted labor troubles in South African mines.

At the Coemx close: August gold added $2 to $1,322; September silver slipped 8 cents to $21.06; October platinum tacked on $2.60, to $1,482.90; and September palladium inched up 30 cents to $843.15 an ounce.