Daily Gold Update

Source: American Gold Exchange

Austin— Gold surged again today, reaching a six-week high as encouraging strides in the Greek debt impasse weakened the dollar against the euro. France and Germany say a Greek bond agreement is starting to take shape, and Greece plans to offer a bond-swap deal to private creditors by mid-February in order to lower its debt-to-GDP ratio, which it must do in order to qualify to continuing ECB and IMF bailout assistance. Although few details were forthcoming, the news rallied the euro and weakened the dollar, which helped to drive up the gold price because it is denominated in dollars.

Gold also saw support from safe-haven buying as Iran threatened again today to block oil shipments through the Straits of Hormuz. Upping the ante, Iran also threatened to attack U.S. targets around the world if any attempt is made to break their blockade. This latest round of saber-rattling came after the E.U. joined the U.S. in banning the import of Iranian oil. Any interruption in shipments could cause a spike in oil prices.

Silver was today's big winner, as it has been so far in 2012, gaining 1.9% after jumping 3.8% last Friday on reports that hedge fund manager Eric Sprott is moving heavily into physical silver bullion to support his new offering, Sprott Physical Silver Trust. Silver has gained 16% this year and gold has gained 7%.

At the Comex close: February gold gained $12.80 to $1,677; March silver jumped 54 cents to $32.27; April platinum added $28.80 to $1,561.10; March palladium surged $13.15 to $688.85 an ounce.