Precious Metals Market Report by Bill Musgrave – American Gold Exchange
Austin — Gold dipped 0.2% to close at $1,183.50, holding on to most of Friday’s 2.1% surge, as a rebound in the dollar reduced demand for alternative stores of value.
The dollar rose near a five-year high against a basket of major rivals after Mario Draghi said the ECB may begin purchasing government bonds to stimulate inflation and economic growth in the Eurozone. Similar to U.S.-styled quantitate easing, which is tantamount to printing money, the move would further undermine the euro.
Japan unexpectedly fell into recession last quarter as GDP dropped for the second straight quarter. The news pressured the yen and further boosted the dollar, which shook off a report from the Philadelphia Fed that U.S. GDP is forecast to grow less than expected over the next two quarters.
The other metals fell harder than gold. Silver led the way, dropping 1.6% after surging 4.4% last session, while platinum and palladium lost 1% and 0.3%, respectively.
At the Comex close: December gold dipped $2.10 to $1,183.50; December silver dropped 26 cents to $16.06 an ounce. January platinum shed $11.80 to $1,201.30; and December palladium slid $2.65 to $768.70 an ounce.
