Gold News & Info

Source: American Gold Exchange

Austin— Gold gained modestly today as a euro rally weakened the dollar and oil prices above $102 stimulated demand for gold as an inflation hedge. Positive U.S. economic news including a 1.5% jump in new housing construction starts, a strong manufacturing report from the Philadelphia Fed, and a four-year low in unemployment filings helped to diminish the dollar's safe-haven appeal and increase risk appetite for gold and equities. The other metals were mixed.

At the closes: April gold rose 30 cents to $1,728.40; March silver dipped 4 cents to $33.37; April platinum lost $12.10 to $1,626.10; and March palladium gained $12.95to $696.60 an ounce.

Uncertainty continues to surround the Greek rescue deal as EU ministers call for yet more assurances that Greece will follow through on strict austerity measures. The euro rallied nonetheless when word came down that some European central banks are willing to swap their holdings for Greek bonds, a move that's consider essential if the bailout is to work. In return, the ECB has secured protection against forced losses on its Greek government bonds.

The World Gold Council released its latest Gold Demand Trends today, covering Q4 and Full-Year 2011. It reports that global demand for gold in 2011 rose to 4,067.1 tonnes, worth an estimated $205.5 billion, which is a new record. The main driver for this increase was the investment sector where annual demand was up 5% over the previous record, set in 2010. India, China, and Europe are the pre-eminent markets, and central banks continued last year's trend of being net buyers of gold. The report predicts that China will eclipse India as the world's largest gold market this year for the first time, "as both growth and inflation remain relatively high, driving local consumers to invest in bullion to protect their wealth." The exploding middle class in China is likely to support higher gold prices for years to come.