Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Extending June's 6.1% rally, gold added 0.4% to close at an 11-week high above $1,326 as conflict in the Middle East and Ukraine drove safe-haven inflows.

Israeli aircraft bombarded dozens of targets in the Gaza strip yesterday after accusing Hamas of killing three Israeli teenagers, further destabilizing a region already reeling from the explosion of sectarian violence in Iraq.

Ukrainian artillery and aircraft attacked pro-Russian separatists after newly-elected President Poroshenko refused to renew an earlier ceasefire, accusing Russia of covertly fomenting insurrection in the eastern Ukraine. Last Friday, Poroshanko signed an agreement with the European Union in direct rejection of Putin's wishes, deepening tensions that have been simmering for months. Gold rose to a six-month high near $1,390 in March after Russia annexed Crimea.

Gold gained despite mostly upbeat manufacturing data that stoked risk appetite. The Dow gained 0.8% and flirted with 17,000 for the first time, while the S&P 500 and Global Dow each added 0.6%.

U.S. manufacturing stayed strong in June, holding near a five-month high, and China's PMI showed factory output expanding at the fastest pace this year. The Eurozone PMI fell, however, behind a deepening downturn in France.

The other precious metals were uniformly higher, with silver adding 0.3% while the PMGs surged on labor strife in South Africa and rising for auto sales in the U.S. Palladium climbed 1.4% while platinum jumped 2.2% to close above $1,500 for the first time in more than eight months.