Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished virtually flat, dipping 10 cents an ounce, as the dollar rallied for a second session behind growing prospects for monetary easing in Europe and China. It was gold's fourth straight session without a win, resulting in a weekly loss of 1.2%.

Following yesterday's announcement by Mario Draghi that the ECB may begin a Fed-style program of asset purchases, known as quantitative easing, as early as June, the euro dove from a 30-month high to a 30-day low as currency traders shifted toward dollars for a second day. A rising dollar pressures precious metal and other commodities denominated in dollars for international trade by making them more expensive to holders of other currencies.

The buck drew additional strength from reports than China's inflation slowed more than expected last month, opening the door to deeper monetary stimulus in the world's second largest economy.

Downward monetary pressure on gold was mostly offset by rising safe-haven demand after pro-Russian separatists said they would ignore Vladimir Putin's tepid plea not to hold a referendum on secession. Further efforts by militants in eastern Ukraine to cleave away from Kiev could escalate into open civil war. Gold rallied to a six-month high near $1,390 in March after a similar referendum in the Crimea led to annexation by Russia.

The other precious metals tracked gold lower, with silver slipping 0.1% while platinum and palladium lost 0.6% and 0.5%, respectively. All finished lower for the week as well, with silver down 2.2%, platinum 0.8%, and palladium 1.6%.

At the Comex close: June gold dipped 10 cents to $1,287.60; July silver slipped 2 cents, to $19.12; July platinum lost $8.20 to $1,429.90; and June palladium shed $4.30 to $799.75 an ounce.