Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rebounded 0.8% to close above $1,203 as concerns about Greece and rising tensions in the Middle East boosted safe-haven demand.

Bloomberg reported that the ECB is looking at ways to curb emergency funding for Greek banks as Eurozone officials pressure Greece to enact the fiscal reforms required to qualify for more aid. The proposal would increase the so-called "haircuts" or discounts imposed on collateral, effectively raising the cost and increasing the risk of borrowing from the Bank of Greece. Traders viewed the news as more evidence that Greece is sliding toward default.

Additional U.S. warships were dispatched to the coast of Yemen and an American aircraft carrier reportedly started shadowing an Iranian convoy suspected of carrying arms to Houthi rebels. The growing militancy in the region combined with worries about Greece to boost Treasury prices along with gold on flights to safety.

The dollar slipped slightly against major rivals following a BLS report of widespread job losses in March. A weaker dollar supports demand for gold and other commodities denominated in it for international trade by making them less expensive in other currencies.

The other precious metals tracked higher with gold. Silver also gained 0.8% while platinum and palladium each added 0.3%.

At the Comex close: June gold gained $9.40 to $1,203; May silver picked up 12 cents to $16.01; July platinum added $3.70 to $1,152.50; and June palladium rose $2.15 to $774.55 an ounce.