Daily Gold Update

Source: American Gold Exchange

Austin— Gold gained and the dollar slid as optimism that the long-awaited bailout of Greece would be approved by EU ministers today stoked global appetite for risk assets and commodities. Copper, which is strongly linked with expectations for global growth, gained more than 1.5%. Oil reached a 9-month high over $105 per barrel as Iran threatened to cut off oil supplies to more nations.

U.S. markets were closed for Presidents Day. In electronic trade on Comex, April gold rose $10.10, or 0.6%, to $1,736 an ounce.

Also supporting gold was China's decision to cut its reserve ratios in bank lending. Intended to increase liquidity and stimulate China's slowing economy by pumping some $64 billion into the banking system, this move is yet another installment in the recent trend of monetary easing by central bankers around the world. The Bank of Japan, the Bank of England, the ECB and the Federal Reserve have all undertaken more easing this year in a concerted effort to support the fragile world economy and prevent deflation. As we've reported in recent weeks, most analysts believe this monetary excess will result in higher gold prices this year and increased inflation risk in years to come. Gold has already gained nearly 11% in 2012.