Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rose for a fourth session, gaining 0.3% to close at a two-week high near $1,188, as the dollar fell behind speculation that Federal Reserve will keep interest rates near zero until September or later.

The dollar deepened its fastest weekly slide in more than three years as traders continued to digest last week's shift toward sustained monetary accommodation from the central bank. A falling dollar supports higher gold by making the metal less expensive to holders of other currencies.

Speaking today in New York, Fed Vice Chair Stanley Fischer reiterated the Fed's new stance, saying a small rise in rates may be warranted by year's end if labor market conditions improve further and inflation trends back toward 2%. Most analysts now expect the first rate hike to occur in October, according to a recent Reuters poll, well after the June increase previously expected.

Gold also received safe-haven inflows from growing concerns that Greece remains on course toward default and exit from the Eurozone. The standoff deepened between Greece and its troika of creditors�the ECB, EU, and IMF�when Germany's Angela Merkel warned in Friday that Greece will only receive new funds if the new government produces an acceptable package of fiscal reforms, which it has failed to provide.

The other precious metals were mostly higher. Silver edged up slightly, holding all of last week's whopping 9% gain, while platinum added 0.3% and palladium fell 1.1%.

At the Comex close: April gold picked up $3.10 to $1,187.70; May silver added one cent to $16.89; April platinum rose $3.30 to $1,144.50; and June palladium fell $8.40 to $770.70 an ounce.