Gold News & Info

Source: American Gold Exchange

Austin— Gold rallied 1% and silver 1.7% as bargain hunters re-entered the market after three straight losing sessions. The dollar retreated and equities rose, with the S&P 500 closing above 1,400 for the first time in nearly four years, as risk appetite gained traction on positive U.S. economic data. Jobless claims last week matched a four-year low and manufacturing in the Philadelphia and New York Fed regions grew more than expected. A popular hedge against inflation, gold also received mild support from reports that February wholesale prices rose by the most in five months, mainly because of higher oil prices. Palladium added 1.8% and platinum gained 0.5% to rise above gold for the first time since early September.

At the close: April gold rose $16.60 to $1,659.50; May silver increased 55 cents to $32.73; April platinum added $8.60 to $1,683.90 an ounce. And June palladium gained $12.45 to $709.90 an ounce.

Gold lost around 5% in three days before today's rebound and more short-term weakness might be forthcoming as hedge funds and institutional investors reposition themselves away from expectations of additional easing from the Fed. But not every heavy hitter thinks more easing is dead. Zero Hedge today quoted Jan Hatzius, chief U.S. economist at Goldman Sachs, as saying QE3 is still very much alive: "we still expect another asset purchase program that involves purchases of both mortgage-backed securities and Treasuries," Hatzius said, and for three reasons. First, current improvements might not last. Second, if they last, they're unlikely to reduce unemployment quickly enough. And third, not easing further would be the equivalent of tightening, and that could choke off recovery. Hatzius expects QE3 to be announced at the FOMC meeting on April 21.