Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold fell 1.8% to hold above $1,225 as traders took profits and the dollar extended its gains, damping demand for alternative stores of value.

One day after jumping 1% for its biggest session in a month, the dollar edged 0.2% higher against a basket of major rivals, especially Asian currencies, after Singapore announced further monetary easing. A stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

Yesterday's release of the Fed's Beige Book, which showed growing economic optimism in sections of the country, helped to fuel speculation that the Fed may be more inclined to raise interest rates in coming months. Higher rates boost the dollar by attracting forex investment in search of yield.

Capping the buck's run-up, however, the Consumer Price Index was weaker than expected in March, rising just 0.1%. Atlanta Fed President Dennis Lockhart said Thursday he will not support a rate hike this month because of weak inflation and consumer spending

The other precious metals were mixed, with silver and platinum falling 0.9% and 1%, respectively, while palladium climbed 3.4%.

At the Comex close: June gold lost $21.80 to $1,226.50; May silver dropped 15 cents to $16.17; July platinum slid $10.10 to $992.90; and June palladium gained $18.40 to $560.90 an ounce.