Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.4% to hold above $1,310 as dovish comments from the European Central Bank about interest rates pressured the euro and boosted the dollar, dulling demand for alternative stores of value.

ECB chief Mario Draghi said today that the central bank will not raise interest rates, currently at negative 0.4%, until 2020 because of slowing growth in the Eurozone. The ECB also lowered its forecast for GDP growth in the region to 1.1% from 1.7%.

The dollar pushed 0.2% higher as the euro slid on the revised rate outlook. Also boosting the buck, the New Zealand dollar tumbled after its central bank signaled a likely rate cut because of flagging growth. A stronger dollar weighs on gold and other commodities by making them more expensive in other currencies.

Gold's slide was backstopped by safe-haven demand as investors fret over Brexit, the global economy, and uncertainty over US-China trade relations. Global government bonds rallied for the same reasons, with yields on German bunds and US Treasury notes dropping sharply as flights to safety drove up bond prices.

The US trade deficit plunged 15% in January because of cheaper oil and a sharp decrease in Chinese imports. A shrinking trade gap could lend a boost to GDP growth but could also indicate shrinking demand for goods as the economy cools.

The other precious metals were also lower, with silver and platinum dropping 0.9% and 0.4%, respectively, while palladium tumbled 6.2%. The ballooning price-differential between platinum and palladium is expected to cause some manufacturers to rotate away from the costlier metal. Both are widely used in auto catalytic converters.

At the Comex close: April gold slid $4.60 to $1,310.40; May silver dropped 13 cents to $15.30; April platinum fell $3.30 to $856.50; and June palladium plunged $94.40 to $1,421.50 an ounce.