Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.1% to close at a 16-week high near $1,340 as Portuguese banking woes helped to tank equities and drive investors toward safe havens. The metal was also supported by follow-though demand after yesterday's Fed minutes underscored the central bank's dovish outlook on maintaining near-zero interest rates.

Turmoil at Portugal's second largest lender, Banco Espirito Santo, resurrected nightmares about the Eurozone debt crisis from 2012, causing regional bond yields to spike and global stocks to tumble. The Dow fell as much as 175 points before bouncing off lows for a 0.4% loss, and the Global Dow dropped 0.6%.

U.S. Treasury prices rose for the fourth straight session on flights to safety. The other precious metals also rose, with sliver leading the way with gains of 2.1%. Platinum and palladium added 0.7% and 0.1%, respectively.

At the Comex close: August gold surged $14.90 to $1,339.20; September jumped 44 cents to $21.51; October platinum gained $10.10 to $1,517; September palladium added 90 cents, to $873.60 an ounce.