Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.7% for its third winning session out of four as mixed U.S. economic data combined with turmoil in the eurozone and Middle East to stimulate safe-haven demand. ADP reported that private companies added 188,000 jobs in June, more than expected. A separate report, however, showed hiring by small businesses declined for a second straight month. The ISM services index fell to its lowest level since February 2010, indicating surprising weakness in sectors comprising two-thirds of the U.S. economy. And the U.S. trade deficit widened by 12% as imports outpaced exports, indicating slower growth.

Fears about the eurozone debt crisis retuned after two senior Portuguese government ministers resigned in the midst of a budget crisis, raising the specter of a government collapse. Portugal was already struggling to meet the terms of a $101 billion bailout from the ECB, EU, and IMF. Concerns are also increasing that Greece may fail to qualify for the next installment of its bailout aid and resume its slide toward insolvency.

Egypt's armed forces staged a popular coup today, ousting elected President Mohamed Mursi, an Islamist, and suspending the constitution. Oil spike 1.5% higher and U.S. Treasury's rallied along with gold and silver, which gained 2%, as global investors flocked to safe havens. Platinum and palladium fell 1.5% and 0.5%, respectively.

At the Comex close: August gold gained $8.50 to $1,251.90; September silver added 39 cents, to $19.70; October platinum dropped $21 to $1,346.80; and September palladium fell $3.20 to $685.70 an ounce.