Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.8% to close above $1,192, recouping yesterday's losses and then some as the dollar and equities weakened, boosting demand for safe havens.

After two days of gains, the dollar fell back against major rivals after Greece tapped emergency reserves to make, one day early, a scheduled debt payment of 750 million euros to the IMF, calming immediate fears of default. However, the cash-strapped nation now has only 90 million euros left in reserves, according to reports, placing it at the edge of insolvency.

Dovish comments by New York Fed President William Dudley also weighed on the buck. Speaking at a policy conference in Zurich, the prominent central banker said he "doesn�t know precisely" when U.S. rates will rise, a statement traders took to mean the first hike may come later this year than expected. A weaker dollar supports higher prices for gold and other commodities denominated in it for international trade by making them less expensive to users of other currencies.

U.S. and global equities traded slightly lower while U.S. Treasury bonds rebounded alongside gold. Oil climbed more than 2.5% to close above $60 per barrel. The other precious metals also gained, with silver jumping 1.4% while platinum and palladium picked up 0.5% and 0.6%, respectively.

At the Comex close: June gold recouped $9.40 to $1,192.40; July silver jumped 23 cents to $16.55; July platinum added $5.70 to $1,133; and July palladium added $5.20 to $785.65.