Gold News & Info

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Gold moved sharply higher both in the New York trading session and in electronic trading after the N.Y. close today, following a speech this morning by St. Louis Fed President James Bullard where he indicated the Fed should refrain from raising interest rates further in the near future. Citing lower inflation expectations and a diminished risk of asset bubbles due to losses seen in the markets recently, this is a reversal of opinion for Bullard, who was one of the Fed�s strongest advocates for rate hikes in 2015.

Reinforcing Bullard�s comments, the Philadelphia Fed reported today it�s barometer of regional manufacturing activity in February rose slightly from -3.5 to -2.8, but was still in contraction for the 6th straight month. Details of the report were �grim,� according to Omair Sharif, economist at Societe Generale. The index for new orders fell from -1.9 in January to -5.0 in February, and while shipments remained positive, they fell sharply from 9.6 to 2.5.

In addition, the OECD cut its global growth forecasts, saying the economies of Brazil, Germany and the U.S. are slowing and warning that some emerging markets are at risk of exchange-rate volatility. �Financial stability risks are substantial,� the Paris-based organization said. �Some emerging markets are particularly vulnerable to sharp exchange-rate movements and the effects of high domestic debt.�

Gold caught a strong safe haven bid as a result, gaining steadily in price during the New York session from $1,205 prior to Bullard�s comments to $1,226.10 at the close of the New York trading. Upward momentum continued in electronic trading, with gold moving quickly higher to a peak of $1,237.80 once resistance at $1,225 was firmly broken. Silver followed gold�s lead, moving from under $15.30 early in N.Y. to as high as $15.55, but gold was the big gainer of the day. Platinum and palladium both declined in modestly in value today.

At the Comex close: April gold surged $14.90 to $1,226.30; March silver added $0.055 cents to $15.42; April platinum fell $4.10 to $945.60; March palladium added $11.05 to $504.85 an ounce. As we go to press, gold and silver continue to hold on to post N.Y, trading session gains, trading at $1,237 and $15.51 respectively.