Gold News & Info

Source:Bill Musgrave, American Gold Exchange

AustinGold surged 1.5% to close at a one-week high above $1,825 as the dollar fell on hawkish news from the Bank of Japan and soft US housing data boosted safe-haven demand.

The BOJ surprised the markets by announcing that it will loosen the cap on benchmark 10-year government bond yields, becoming the last major central bank to embrace monetary tightening. Japan has held yields at around 0.1% through massive quantitative easing this year.

Global government bonds sold off after the move, 10-year and 30-year US Treasury yields to three week-highs.

The dollar plummeted 0.7% against major rivals led by the yen, which rallied more than 3% on the prospect of higher yields. A falling dollar supports gold and other commodities by making them less expensive in other commodities, boosting demand overseas.

Gold was also buoyed by another round of weak US housing data. Building permits fell 11.2% in November, far more than forecast, as high mortgage rates and economic gloom curtail demand. Construction of new homes fell 0.5%, compounding October's drop of 2.1%.

The other precious metals were also sharply higher. Silver jumped 4.6%; platinum added 2.6%; and palladium rose 4.1%.

At the Comex close: February gold surged $27.70 to $1,825.40; March silver rallied $1.07 to $24.27, its highest finish in eight months; January platinum picked up $25.30 to $1,013; and March palladium climbed $68.60 to $1,733.50 an ounce.