Gold News & Info

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold inched up in thin trade on expectations of monetary easing from the Bank of Japan. The minutes of the central bank's recent meeting, released today, show a growing intent to expand the money supply through outright asset purchases much like U.S.-styled quantitative easing, which is tantamount to printing money. Newly re-elected Prime Minister Shinzo Abe has also called for aggressive stimulus to boost the economy. Japan seeks advantage in foreign exchange markets with a devalued yen, which would make its exports cheaper. More quantitative easing the U.S., Japan, and Europe is expected to drive demand for gold in 2013 because it increases the risk of global inflation. Silver and palladium gained 0.5% and 1.5%, respectively, while platinum finished flat.

At the Comex close: February gold added $1.20 to $1,660.70; March silver gained 14 cents to $30.04; January platinum finished flat at $1,534.90; and March palladium rallied $7.85 to $692.40 an ounce.

Gold also received mild safe-haven support from fading optimism that a substantial solution on the fiscal cliff will be reached before January 1, when $600 billion in tax increases and spending cuts could take the wind out of the U.S. recovery. Equities fell on risk-aversion while Treasuries rose with gold.