Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold closed 1.6% higher, reclaiming $1,200 after nearing $1,211 in intraday trade, as global risk-aversion and a weaker dollar boosted its safe-haven appeal.

Worries about Greece's potential exit from the euro and its effect on an already stumbling Eurozone caused investors to retrench, pushing the Dow back under 18,000 and subtracting .75% from the Global Dow.

The growing likelihood that a new Greek president, when elected, will break the terms of the ECB bailout sent yields Greek bonds and European stocks tumbling as traders ran for safety in gold, silver, and the yen.

Gold was further supported by a falling dollar, which lifts demand for commodities denominated in it by making them less expensive to users of other currencies.

The other precious metals were mostly higher, with silver surging 3.2% and platinum gaining 1.4%. Outlier palladium, more closely tied to industry, declined 1%.

At the Comex close: February gold rallied $18.50 to $1,200.40; March silver surged 50 cents to $16.28 ; April platinum gained $16.60 to $1,219.30; and March palladium lost $7.80 to $804.20 an ounce.