Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold closed 1% higher and then added another 0.5% in electronic trade as bargain-hunters swooped in after this week's sell-off. Gold had fallen more than 5% earlier this week as higher bond-yields and a stronger dollar reduced safe-haven demand. Rising physical demand in Asia helped buoy the metal, as did a report showing U.S. business activity declining in June, reducing the likelihood of near-term reductions in stimulus..

Anxiety over when the Fed might decide to reduce quantitative easing, its program of buying $85 billion in long-term bonds each month, has weighed on the metal for several months. Tantamount to printing money, QE supports higher gold prices by devaluing the dollar and increasing the risk of long-term inflation. Fed officials have been working overtime this week to reassure the market that QE will not, in fact, end prematurely, but to little avail. Despite today's 1.5% rally, gold finished the quarter with a record-high loss of 23%. Silver rallied 4.9% today but still finished with a 32% quarterly loss. Platinum and palladium picked up 0.8 and 1.5%, respectively.

At the Comex close: August gold rebounded by $12.10 to $1,223.70; September silver jumped 92 cents to $19.47; October platinum added $10.80, to $1,339.90; and September palladium gained $10 to $660.70 an ounce.