Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 0.6%, breaking a three-day losing streak despite a rising dollar, as European leaders failed to make progress on the crisis in Greece and the eurozone economy contracted at its fastest pace in almost three years. Gold also received support from reports of strong central bank buying from Turkey, Mexico, Ukraine, and Kazakhstan. U.S. and global equities saw mild gains while oil added more than 1% as U.S. Labor Department reported a slight decline in jobless claims and a small rise in durable-goods orders. Silver picked up 2.3% and palladium 0.6% while palladium pulled back 0.6%

At the close: June gold gained $9.10 to $1,557.50; July silver for rose 64 cents to $28.16; July platinum added $8.30 to $1,422.40; and. June palladium turned dropped $3.60 to $587.50 an ounce.

Central banks continue to be strong buyers of physical bullion, especially in emerging markets and on dips in price They buy gold in order to diversify their reserves away from sovereign debt and currency risk, especially in the dollar and euro. IMF figures for April gold purchases show Turkey adding almost 30 metric tons, Mexico almost 3 tons, Kazakhstan 2 tons, and Ukraine slightly less. New figures also show the Philippines bought nearly 78 tons of gold in March. A metric ton is roughly equal to 35,275 ounces. Central banks bought more than 430 tons last year, the most since 1964 and nearly five times as much as 2010, and are expected to buy nearly as much this year. This trend should provide solid support for gold going forward.