Daily Gold Update

Source: American Gold Exchange

Austin— Gold surged 1.9% to a two-week high as eurozone ministers finally approved a second bailout of Greece. We said a week ago to expect a significant risk-rally for gold once the agreement fell into place and that's exactly what happened today. Bonds fell and equities also rose strongly, with the Dow surpassing 13,000 for the first time since 2008, before falling back as lingering questions about eurozone stability tempered growth expectations. The other precious metals surpassed gold, with silver gaining a whopping 3.7%, platinum 3.1%, and palladium 3.3%. Oil also gained 2.5%.

At the closes: April gold rose $32.60, to $1,758.50; March silver leapt $1.21 to $34.43; April platinum gained $51o $1,684.90; and March palladium picked up $22.65to $710.75 an ounce.

After months of delays and consternation, Greece was finally awarded 130 billion euros in aid, which brings the total so far to at least 386 billion euros dedicated merely to save Greece, Ireland and Portugal from bankruptcy. Spain and Italy are also expected to need help. But few analysts are confident that these actions have done anything more than postpone catastrophe. Because of the draconian austerity measures imposed upon it, as Bloomberg reported today, �The danger of Greece saving itself into economic depression and having to default and exit the common currency zone remains substantial,� said Christian Schulz, an economist at Berenberg Bank in London. In the mean time, gold will continue to benefit from low global interest rates and central bank easing required to keep the eurozone afloat and stimulate the struggling economies of the U.S., China, the U.K, and elsewhere.