Daily Gold Update

Source: Dr. Bill Musgrave, American Gold Exchange

Austin— Gold finished 0.1% higher and the dollar weakened slightly as the Greek debt crisis eased for the time being. The S&P 500 rebounded from a two-month low and oil rose for the first time in seven days after U.S. jobless claims fell for the first time in a month, stimulating some risk appetite. Silver lost 0.1% and platinum 0.4% while palladium followed gold, gaining 0.3%.

At the close: June gold gained $1.30 to $1,595.50; July silver lost 6 cents to $29.18; July platinum fell $5.40 to $1,493.80; and June palladium added $1.70 to $615.35 an ounce.

Greece received its next installment of bailout money, allaying fears that it might default on debt payments as early as next week and relieving some pressure on the euro zone. EU officials were reluctant to release the aid until progress was apparent in the formation of a new government, which now seems somewhat more likely as Evangelos Venizelos, leader of Greece's socialist party and former finance minister, declared his intention to establish a coalition that keeps the nation within the monetary union. Still, more than 50% of investors polled by Bloomberg think Greece will exit the euro this year, throwing the region's economy into a tailspin.

Goldman Sachs said today that gold will reach $1,840 within the next six months because of weaker U.S. growth, deepening sovereign debt risks in Europe, and resilient physical demand. Gold remains preferable to the dollar as the safe haven currency of last resort, according to Goldman, because "the original U.S. dollar concerns have not disappeared," namely, the rising risk of U.S. debt default and the debasement of the dollar though monetary easing.