Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Notching its fifth straight winning sessions, gold gained 0.2% to close at a five-month high above $1,294 as the dollar plunged on soft U.S. data and political uncertainty in Britain, boosting demand for alternative stores of value.

British Prime Minister Theresa May surprised financial markets by calling for a snap general election in June, hoping to bolster Tory power and strengthen her hand in Brexit negotiations. The pound soared 1.6% to a five-month high on the announcement.

U.S. housing starts fell 7% in March, raising questions about the crucial housing market entering prime buying season. And factory output fell 0.4% for its first decline since August, dragged down by a 3% drop in auto manufacturing. The Atlanta Fed lowered its forecast for real GDP growth in Q1 to just 0.5%

The dollar plunged nearly 0.8% on the UK election news and US data. Uncertainty over the upcoming presidential election in France also weighed on the buck by driving investors into safe havens like the yen and gold. A weaker dollar typically supports gold by making it less expensive overseas.

The other precious metals finished lower, with silver dropping 1.3% while platinum and palladium lost 1.2% and 2.2%, respectively.

At the Comex close: June gold gained $2.20, or 0.2%, to settle at $1,294.10; May silver dropped 24 cents to $18.27; July platinum lost $12.20 to $976.90; June palladium shed $17.55 to $771 an ounce.