Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Building on last week's 3.1% rise, gold added another 0.2% to close near $1,227, its highest finish since early February, as Greek fears and weak data supported safe-haven inflows. It was the metal's fifth straight winning session, the longest streak since early March.

U.S homebuilder confidence fell unexpectedly in May, a sign of souring sentiment in the real estate market. Coming after Friday's dour reports on consumer sentiment and industrial output, and recent data showing falling retail sales and lower wholesale inflation, the news added to pessimism about prospects for growth in Q2.

Gold rose despite a rebound in the dollar, which climbed from four-month lows on flights to safety because of growing concern that a default by Greece is close at hand. A rising dollar typically weighs on gold and other commodities that are denominated in it for international trade.

Cash-strapped Greece admitted today that it will be unable to stay afloat past May without debt-relief and additional aid from the IMF. Nonetheless, the government of Prime Minister Alexis Tsipras refuses to compromise on pledges made to the Greek electorate about reducing key austerity measures, a position that is unacceptable to its EU and IMF creditors.

The other precious metals were mixed, with silver and platinum gaining 1% and 0.8%, respectively, while palladium slipped 0.3%

At the Comex close: June gold added $2.30 to $1,227.60; July silver gained 17 cents to $17.73; July platinum rose $9.40 to $1,178; and June palladium slipped $1.95 to $793 an ounce.