Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— In its biggest day in four weeks, gold surged 1.3% to close just under $1,317 as rising turmoil in the Ukraine spurred demand for safe havens.

A Malaysian Airlines passenger plane was shot down by radar-guided missiles in eastern Ukraine today, killing all 295 passengers and provoking accusations by Kiev that pro-Russian insurgents were responsible. The catastrophe comes one day after a Ukrainian fighter jet was reportedly shot down by Russia.

Gold moved above $1,300 in early trade after the U.S. and E.U. announced deeper sanctions against Russia for providing weapons and support to the rebels. The metal then jumped nearly 1% in a matter of minutes after reports of down Malaysian airliner caused sharp risk-off sentiment. The Dow and Global Dow tumbled nearly 1% while U.S. Treasurys rallied alongside gold on flights safety, forcing yields on 10-year bonds down near their lowest level of the year. The dollar rose against most rivals and oil jumped 1.8% on concerns about possible supply interruptions if tensions escalate further.

The other precious metals tracked gold higher despite the stronger dollar, which typically weighs on commodities denominated in it for international trade by making them more expensive for foreign buyers. Silver jumped 1.7% while platinum and palladium gained 1.2% and 1%, respectively. Platinum prices, which approached a 13-year high, were aided by worries that sanctions against Russia, a major producer, may curtail supply.

At the Comex close: August gold surged $17.10 to $1,316.90; September silver jumped 36 cents to $21.13; October platinum gained $18.00 to $1,503.70; and September palladium rose $8.35 to $885.10 an ounce.