Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold surged 2.2% to close at a four-month high above $1,350 as the rapidly escalating crisis in the Ukraine drove investors into safe havens. Russian troops moved into the Crimea and demanded the surrender of two Ukrainian warships, inflaming tensions between the U.S. and Russia to the highest degree since the cold war. Risk appetite tumbled after the invasion, with the Dow losing 1% and the Global Dow 1.5%.

Even before the Russian saber-rattling, hedge funds had turned quite bullish on gold because of concerns about the weakening U.S. economic recovery and slowing global growth. Net-long positions rose by 25% last week as speculators increased their wagers on higher gold prices by the most since December 2012.

U.S. Treasury bonds soared along with gold and oil on intentional flights to safety. The other precious metals also rallied, with silver gaining 1.2% while platinum and palladium added 1% and 0.8%, respectively.

At the Comex close: April gold surged $28.70 to $1,350.30; May silver jumped 24 cents to $21.485; April platinum gained $13.90 to $1,460.70; and June palladium added $5.55, to $750 an ounce.