Gold prices sink after report shows incomes rising

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Associated Press

Posted on January 31, 2013 at 3:00 PM

Updated Thursday, Jan 31 at 3:02 PM

NEW YORK (AP) — Gold prices are sinking after a report showed that Americans' incomes surged in December.

Gold for April delivery lost $19.60, more than 1 percent, to settle at $1,662 per ounce.

The Commerce Department said Thursday that personal income jumped 2.6 percent from November to December, the biggest monthly gain since 2004. The big drivers were dividend payments and bonuses, which companies moved up to help high-income earners avoid tax increases in 2013.

The news helped ease worries that the economy could be headed for a rough patch. The government said Wednesday that the economy shrank slightly in the last three months of 2012.

Silver followed gold lower. Silver for March delivery sank 82.6 cents, more than 2 percent, to $31.35 per ounce.

Other metals and grains were mostly lower.

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