Precious Metals Market Report by Bill Musgrave – American Gold Exchange
Gold slipped 1.5% to settle just under $1,200, surrendering less than half of yesterday’s 3.6% surge, as a sharply higher dollar and lower oil reduced demand for alternative stores of value.
The ICE dollar index jumped to its highest level since March 2009 as softer economic conditions in most other economies weighed on their currencies. The dollar hit a 28-month high against the euro after reports that wholesale inflation fell in the Eurozone at the fastest pace in a year, adding to pressure on the ECB to deepen monetary easing. The buck rose to a new seven-year high against the yen after Moody’s downgrade of Japan’s debt undermined confidence in Prime Minister Abe’s ability to pull his nation out of deflation.
The dollar has rallied 9% this year as measured by the index, weighing heavily on gold, oil, and other commodities that are denominated in the currency for international trade. Oil fell around 2.6% after yesterday’s 4.6% rebound. Silver slid 1.4% while platinum and palladium lost 1.9% and 0.5%, respectively.
At the Comex close: February gold slipped $18.26 to $1,199.40; March silver slid futures for delivery slid 24 cents to $16.46; January platinum dropped $23.58 to $1,217.50; and March palladium skidded $4.04 to $803.75 an ounce.