Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.5% in choppy trade to close above $1,207 as dovish Fed minutes combined with new concerns about Greece's bailout to drive demand for alternative stores of value.

The FOMC expressed concerns about the stronger dollar being "a persistent source of restraint" on growth in their last meeting, the minutes showed, and advocated "patience" before hiking rates. After yesterday's release, the dollar immediately fell and gold rose in electronic trade on speculation that the first rate hike will be deferred from June until September at the earliest.

Gold built on those gains this morning by climbing as high as $1,223 in intraday trading after Germany rejected Greece's request for a six-month extension on its bailout agreement, saying it offers "no substantial proposal for a solution." Greece has until the end of the month before its $273 billion bailout expires, leaving it without financing and at risk of default.

The dollar rebounded on the rekindled Greek crisis, suppressing gold's earlier gains. A stronger dollar weighs on gold and other commodities denominated in it for international trade by making them more expensive to users of other currencies.

The other precious metals tracked higher with gold. Silver rose 0.7% while platinum and palladium picked up 0.4% and 1.3%, respectively.

At the Comex close: April gold gained $7.40 to $1,207.60; March silver rose 11 cents to $16.38; April platinum added $5.10, to $1,172.30; and March palladium jumped $10.20 to $786.80 an ounce.