Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rocketed 3.5% higher to close at a 32-week high near $1,198 as renewed sell-offs in equities and the dollar spurred safe-haven demand. Notching its biggest single-day gain in nearly 14 months, the metal has now surged 12% so far this year as concerns about slowing global growth have gripped the markets.

Friday's lackluster U.S. nonfarm payrolls data, which registered just 151,000 new jobs in January, was the latest in a sequence soft reports suggesting a loss of momentum in the U.S. economy. GDP grew at just 0.7% in the fourth quarter; manufacturing has been in contraction for months; and the ISM reported last week that the services sector, comprising 80% of GDP, is growing at the slowest pace in two years.

NASDAQ dropped 1.8%, touching its lowest level since October 2014 in intraday trade. The Dow lost 1% and and Global Dow 1.5%. Oil prices extended their slide to three sessions on continuing supply-glut concerns. Treasurys rallied alongside gold on flights to safety, with 10-year yields dropping to a 12-month low.

The dollar fell 0.5% against major rivals, plumbing a 13-month low against the yen, as speculation grows that the Fed will be unable to raise interest rates until late 2016 or early 2017. Hedge funds and other large money managers are losing faith in the buck, trimming their long positions by 20% the first week in February. A weaker dollar supports gold and other commodities by making them less expensive overseas.

The other precious metals also enjoyed strong gains, with silver jumping 4.4% while platinum and palladium rose 2.8% and 3.0%, respectively.

At the Comex close: April gold rocketed $40.20 to $1,197.90; March silver jumped 65 cents to $15.43; April platinum added $25, to $928.70; and March palladium picked up $19.40 to $518.10 an ounce.