Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold surged 1% to a three-week high of $1,274 as weak U.S. economic data and rising violence in Iraq stoked safe-haven buying. Silver also soared to a three-week high, adding nearly 2%, while platinum and palladium tumbled following an "agreement in principle" to end a damaging five-month strike in South Africa.

Retail sales came in well-below expectations, rising just 0.3% in May, and jobless claims rose unexpectedly last week, reinforcing the view that the recovery remains sluggish and uneven. Treasuries rallied alongside gold and equities fell, with traders eschewing risk in favor of quality and protection.

Escalating violence in Iraq also supported higher gold prices after militarized Kurds took over an oil-rich province in the north. Fears are growing that the conflict, already seen as the nation's worst sectarian crisis in more than a decade, could explode into full-blown civil war and destabilize the entire Middle East.

Platinum fell 2.7% after 70,000 striking union members reached tentative agreement to return to work in the three largest mines in South Africa, the world's biggest producer of platinum. Palladium tumbled a whopping 4.7% just one day after reaching a 13-year high.

At the Comex close: August gold surged $12.80 to $1,274; July silver jumped 36 cents to $19.53; July platinum fell $39.80 to $1,441.30; and September palladium tumbled $40.75 to $819.40 an ounce.