Gold News & Info

Source: Dr. Bill Musgrave, American Gold Excahnge

Austin— Gold jumped 1.5%, closing at a two-week high of $1,412, as weaker U.S. economic data raised expectations that the Fed will continue its current program of quantitative easing. First-quarter GDP was revised down by ten basis points to 2.4% as higher payroll taxes and cuts in government spending took their toll. And weekly jobless claims rose unexpectedly to 354,000.

The dollar fell sharply for a second day and equities rallied, also on prospects for continuing monetary stimulus. QE has fueled record-high runs in the S&P 500 and Dow by flooding the markets with cheap money and encouraging risk. It has also helped gold to increase by nearly 60% since 2008 because it devalues the dollar and increases the risk of long-term inflation, boosting demand for precious metals as alternative stores of value. Silver gained 1.1% while platinum and palladium added 2% and 1.4%, respectively.

At the Comex close: August gold jumped by $20.20 $1,412; July silver gained 1.1%, to $22.69; July platinum picked up $29.70, to $1,482.70; and September palladium added $10.45, to $760.55 an ounce.