Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 1% to close near $1,164 as a softer dollar, growing worries over China and Greece, and dovish minutes from the last FOMC meeting boosted demand for safe-haven assets.

China's stock markets plunged again, forcing the PBOC to introduce yet more measures to provide liquidity and forestall panic, including propping up brokerages and suspending trade of some securities. Nearly half of mainland stocks are now untradeable, either because of suspensions by the issuing companies or freezing by the government to prevent deeper, destabilizing sell-offs. Chinese shares have lost around 30% since mid-June.

Greece formally applied for a new three-year loan from the European Stability Mechanism, an emergency EU bailout fund, to prevent a default that would likely force it from the euro. While again promising to implement tax and pension reforms, the nearly bankrupt nation has yet to offer specifics, leaving EU officials skeptical that a deal can be struck before the weekend deadline.

In the minutes from the June Fed meeting, released today, only one member showed any inclination to raise rates in June�and even that official was willing to delay for "another meeting or two." The rest of the committee solidly supported waiting for evidence of stronger growth, improving labor conditions, and higher inflation. A number cautioned against "premature" tightening, suggesting that a September hike may be less likely than previously thought.

The dollar softened after the Fed minutes, supporting gold and other commodities denominated in it for international trade. Silver gained 1.3% and palladium picked up 0.2% while platinum fell 0.6%.

At the Comex close: August gold rebounded $10.90 to $1,163.50; September silver gained 19 cents to $15.16; October platinum dropped $5.70 to $1,035.80; and September palladium added $1.10, to $653.50 an ounce.