Today's AM fix was USD 1,623.50, EUR 1,284.52, and GBP 1,035.20 per ounce.
Friday's AM fix was USD 1,619.00, EUR 1,289.83, and GBP 1,044.65 per ounce.

Silver is trading at $28.50/oz, €22.64/oz and £18.25/oz. Platinum is trading at $1,492.50/oz, palladium at $626.75/oz and rhodium at $1,215/oz.

Gold rose $1.90 or 0.12% on Friday in New York and closed at $1,626.20/oz resulting in a 2% gain for the week.  Gold initially rose and then fell in Asia. However, gold has made a quick recovery (low $1,616/oz) and is holding its ground above $1,620/oz.

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Cross Currency Table - (Bloomberg)

Gold took a tumble for the first time in 7 sessions in Asia as Antonis Samaras, leader of the Greece's New Democracy Party (pro-bailout) was victorious.  Today, Samaras plans to form a coalition with other parties backing the bailout - meaning that Greece's future in the euro is secure - for now. 

Gold's dip in Asia was thought to be due to profit taking and increased risk appetite after the Greek election. However, this increase in risk appetite has been quite short lived with Spanish and Italian 10 year bonds again coming under pressure resulting in record Spanish yields over 7.13% and Italian 10 year over 6% again.

Initial gains in equity markets have subsided and the lessening of risk appetite is seeing gold supported.

Greece's exit from the Eurozone is no longer a short term risk however it remains a real risk as does the risk of financial contagion in the Eurozone due to insolvent banks in Spain, Italy and France.

Some investors are waiting for a policy statement release from the US Fed after their 2 days of meeting concludes on Wednesday. Further QE is inevitable and if this is signalled gold should react very positively and we could see a sharp move up as was seen last July and August (see chart).

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XAU/USD Daily - (Bloomberg)

When an earlier round of quantitative easing was announced in November 2010, it pushed gold to a record high as more money was pumped into the financial system. 

Gold is expected to benefit from strong support at $1,610 and especially $1,604, Societe Generale said in a note today as reported in the Reuters Global Gold Forum. Resistance is set to kick in around $1,632 then at $1,637/oz.