Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Finding some safe-haven support after yesterday's sell-off, gold inched up after a spate of soft data reminded investors that the U.S. economic recovery is far from assured. Manufacturing contracted unexpectedly in the Philadelphia Fed region for the second month in a row. Jobless claims rose for the first time in three weeks, returning to pre-holiday levels. And the majority of Americans remain pessimistic about the economic outlook,according to the latest Bloomberg Comfort Index. Global equities continued yesterday's declines while safe-haven sentiment edged back toward gold and silver. The U.S. dollar also rose, pressuring the metals' gains. Silver added 0.3% while platinum and palladium, more heavily ties to industry, declined by 1.7% and 0.4%, respectively.

At the Comex close: April gold rose 60 cents to $1,578.60; March silver added 8 cents, to $28.70; April platinum lost $27.10 to $1,620; and March palladium dropped $2.80 to $733.60 an ounce.

Gold tumbled around 2.5% yesterday, largely because the newly-released minutes from the Fed's January meeting showed a growing skepticism by some members of the FOMC that quantitative easing is still needed. Monetary easing has boosted the gold price by undermining the value of the dollar and increasing the risk of long-term inflation. Today's soft data lent support to gold by allaying fears that QE will be removed any time soon.