Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5% to close at a one-week high of $1,179 on safe-haven inflows as Greece slides closer to insolvency, panic, and possible expulsion from the Eurozone.

Following last week's breakdown in negotiations between Greece and its international creditors, the ECB capped emergency funding for faltering Greek banks on Sunday, throwing the nation's banking system into turmoil. To prevent panicked capital flight, Greece responded by closing its banks until July 6, one day after the emergency referendum to determine whether to accept the additional austerity measures demanded by the IMF, ECB, and EU in exchange for new bailout funds. A "no" vote would almost certainly mean abandoning the euro.

The growing threat of financial contagion from a Greek default is causing global risk aversion, with European stocks suffering their biggest one-day drop since 2011. The Dow and S&P 500 dropped around 2%. Treasury prices spiked higher alongside gold on flights to safety.

The other precious metals were mixed on the day, with silver and palladium falling 0.5% and 1.8%, respectively, while platinum added 0.2%.

At the Comex close: August gold gained $5.80 to $1,179 an ounce on the Comex � its highest settlement since June 22. Prices tacked on 0.1% on Friday, after posting losses for five sessions in a row.