Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.6% to close above $1,241 as concerns about China's economy and Greece's viability in the Eurozone boosted safe-haven demand.

Trade data for China was unexpectedly weak in January, with imports plunging nearly 20% compared to a year ago for the sharpest decline in nearly six years. Exports fell more than 3% for the first decline in nearly a year. The Chinese government is expected to cut its forecasts for growth to 7% in 2015 after posting 7.4% last year, the slowest in 24 years. More aggressive monetary stimulus is also expected, to increase liquidity and boost demand in the manufacturing sector.

In a new standoff with the ECB, Greece's new Prime Minister vowed yesterday that he will not compromise on demands to restructure the nation's debt and reduce the budget surpluses required by the bailout agreement. Greek bonds tumbled and banks saw renewed outflows. Former Fed Chair Alan Greenspan said that Greece's exit from the euro is only a matter of time because it is unlikely to receive additional loans to prop up its economy if it reneges on its prior obligations.

The Greek drama and Chinese trade data pulled stocks lower, with the Dow falling more than 0.5% and the Global Dow nearly 0.4%. The dollar slipped against most major rivals, supporting higher prices for gold. Greek demand for gold coins rose in January, according to the UK Royal Mint, as investors sought protection from economic turmoil.

The other precious metals were mixed, with silver rallying 2.3% while platinum and palladium, more directly tied to industry, dipped 0.1% and 0.2%, respectively.

At the Comex close: April delivery gold gained $6.90 to $1,241.50; March silver jumped 38 cents to $17.07; April platinum dipped $1.20 to $1,220.40; and March palladium slid $1.65 to $779.65 an ounce.