Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.6% to close just under $1,091 as a spate of weaker U.S. economic data combined with plunging stocks and lower oil to propel safe-haven demand.

Wholesale inflation fell again as U.S. producer prices lost 0.2% in December, finishing the year with a decline of 1%, the biggest annual loss in five years. Tumbling energy and food prices, the strong dollar, and weak global growth were the main drivers.

Manufacturing in the New York Fed region plunged deeper into negative territory in December, hitting its lowest level since March 2009. Nationwide, industrial production fell for the third straight month, according to data released by the Federal Reserve.

U.S. retail sales declined in December, making 2015 the slowest year since 2009 for growth in this crucial sector of the economy. The Atlanta Fed's GDPNow forecasting tool revised real GDP growth for the fourth quarter to just 0.6%.

Equities fell sharply, with the Dow dropping nearly 400 points, or nearly 2.4%, and the Global Dow losing nearly 2% as worries about falling growth in China and the U.S. rocked markets. U.S. equities posted their worst 10-day start to a year in history. Oil dropped more than 6% to finish at a new 12-year low under $29 per barrel.

The other precious metals were mixed. Silver picked up 1.1% on safe-haven inflows while platinum and palladium, more directly ties to industry, both lost 0.9%.

At the Comex close: February gold surged $17.10 to $1,090.70; March silver jumped 15 cents to $13.90; April platinum dropped $7.30 to $827.50; and March palladium lost $4.20 to $487.05 an ounce.