Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rallied 1.4% to close at a one-week high above $1,239 as surprisingly weak U.S. economic data triggered another wave of safe-haven sentiment.

New home sales tumbled 9.2% in January, according to the Commerce Department, raising questions about momentum in the crucial housing market. The declines were led by a led by a 32% plunge in the West, where high prices and tight inventories are stifling sales.

In a separate report, the U.S. services sector contracted this month for the first time in more than two years, according to Markit's flash services PMI. With the services sector comprising roughly 90% of GDP, the unexpected contraction suggests that the weakness plaguing manufacturing and energy are spilling over into the economy at large.

The IMF called on the G20 nations to coordinate stimulus programs to prevent the global economy from falling again into recession.

U.S. Treasury bonds rallied along with gold on flights to safety, with 10-year yields falling to a new one-year low. The other precious metals were mostly higher, with silver gaining 0.4% and platinum edging up 20 cents while outlier palladium dropped 2.6%.

At the Comex close: April gold rallied $16.50 to $1,239.10; March silver gained 6 cents to $15.30; April platinum edged up 20 cents to $943.70; and March palladium fell $12.75 to $487.30 an ounce.