Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rose for a second session, picking up 0.3% to close near $1,778, as the dollar and global equities retreated in favor of alternative assets.

Global stocks fell back after weaker economic from China and uncertainty about Greece's future cut into risk appetite. Inflation in China dropped to 1.2% last month, prompting expectations that the People's Bank of China will have to pump more monetary stimulus into the struggling economy. Stocks in Japan and Hong Kong fell more than 1%.

EU officials dismissed Greece's latest promises of fiscal reform as inadequate to qualify for the next tranche of aid required by the cash-strapped nation to avoid default. European shares reacted with the sixth straight losing session. Meanwhile, S&P cut ratings on several major European Banks, including Deutsche Bank AG and Commerzbank AG.

The dollar fell back for a second day as traders digested yesterday's remarks, later denied, from President Obama to G-7 delegates calling the strong dollar a problem. U.S. stocks finished slightly lower despite reports that job openings reached a record in April and optimism among small businesses improved in May.

The other precious metals were mixed, with silver finishing virtually flat while platinum gained 0.7% and palladium dropped 0.5%.

At the Comex close: August gold rose $4 to $1,177.60; July silver was flat $15.95; July platinum gained $7.30 to $1,108.50; and September palladium dropped $3.85 to $739.90 an ounce.