Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold jumped 1.2% to close above $1,415, its highest since mid-May, as the dollar fell hard against most rivals. ECB president Mario Draghi refrained from further rate cuts and damped expectations of more monetary stimulus, saying the eurozone economy is on track for growth in 2014. The news drove the euro its highest level since February and helped cause the ICE dollar index to fall 1.3%. Dollar also tumbled against the yen following Prime Minister Abe Shinzo's pledge to provide $302 billion to stimulate Japan�s electricity industry.

Forex traders further cut long positions in the U.S. currency ahead of Friday's release of U.S. non-farm payrolls data, which is likely to be weak enough to prevent the Fed from reducing quantitative easing. Recent statements from various Fed members about possible reductions in easing have helped to support the dollar at gold's expense. Tantamount to printing money, QE devalues the dollar and increases the risk of long-term inflation, stimulating demand for gold as an alternative store of value. The other precious metals also gained, with silver adding 1.1%, platinum 1.2%, and palladium 0.8%.

At the Comex close: August gold rallied by $17.30 to $1,415.80; July silver added 23 cents, to $22.71; July platinum gained $18.70 to $1,529.30; and September palladium rose by $5.85 to $762.30 an ounce.