Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained for a third day, rising 0.8% to a one-week high near $1,187, as the dollar fell and demand for commodities surged behind optimism for a Greek debt deal.

U.S. and global equities rallied after Germany tentatively agreed to accept a proposal from Greece committing to at least one fiscal reform in exchange for additional bailout aid. While the precise nature of the reform has yet to be disclosed, any compromise is seen as progress in the stalled negotiations and bodes well for continued Eurozone unity. The Dow and Global Dow both rose around 1.4%.

In its third day of retreat, the dollar fell more than 0.6% against a basket of rivals under pressure from a pending Greek deal and comments by Bank of Japan chief Haruhiko Kuroda, who said the yen is unlikely to depreciate further. Citing concerns about his currency's weakness, Kurado indicated that the BOJ will probably not expand its program of quantitative easing in the near future. Tantamount to printing money, QE has undermined the value of the yen by flooding the market with new liquidity.

The falling dollar supported higher prices for precious and other commodities denominated in it for international trade by making them less expensive to users of other currencies. The Goldman Sachs Commodity Index surged 2.3% and oil spiked around 2% to a 2015 high above $61. Platinum and palladium picked up 0.6% and 0.5%, respectively, while silver finished virtually unchanged.

At the Comex close: August gold gained $9 to $1,186.60; July silver was flat at $15.96; July platinum climbed $6.70 to $1,115.20; and September palladium added $3.60, to $743.50 an ounce.