Daily Gold Update

Source: American Gold Exchange

Austin— Gold and silver gained for the second session and risk appetite returned as Greece appeared to gather enough participants to fulfill its debt-swap agreement and avoid default. The Dow rose 0.6% and the Global Dow jumped 1.75%, while dollar dropped 1% against the euro, making dollar-denominated gold cheaper. Gold added 0.8% and silver 0.5%. Platinum and palladium surged 2 % and 2.3%, respectively.

At the close: April gold added $13.10 to $1,697; May silver gained 16 cents to $33.74; April platinum rose $32.30 to $1,659.60; and May palladium gained $15.90 to 701.25 an ounce.

After much brinksmanship, Greece apparently closed its 2.3 billion euro bond-swap deal with private creditors, clearing the way for the international bailout funds needed to avert chaotic sovereign debt default later this month. The deal's completion required at least 75% of outstanding bonds, a threshold reached at the last minute when six Greek state-controlled pension funds, together owning 3.3 billion euro of government bonds, stopped holding out. The biggest sovereign debt restructuring in history, it shaves 100 billion euros from Greece's public debt by forcing losses of 74% on creditors. At least for now, the deal gives investors hope that Greece will remain solvent and the eurozone will avoid consequent cascade failure. Precious metals rose on the news and commodities, including oil, generally traded higher.

Gold was also supported by yesterday's talk about more Fed easing to come, news that the U.K. will maintain its present easing program, and ECB president Mario Drahgi's vigorous defense of the LTRO easing programs, all of which are seen as increasing future inflation risk.