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Gold gains again

Markets were higher yesterday and the gold price has shot up again amid news of appointments at the European Central Bank and US Federal Reserve, plus the prospect of US-Europe trade tensions.
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Eldorado is waiting on permits for its stalled Skouries gold-copper project in Greece

Staff reporter

"Some caution and some flight to gold, flight to the safety of Treasuries makes some sense - because everybody is scratching their heads and saying how does this end?" Wells Fargo Asset Management chief investment officer Kirk Hartman told Bloomberg TV.

Gold was above US$1,427 an ounce on the spot market at the time of writing, having gone close to $1,436/oz earlier.

Metals and mining stocks just managed an overall gain on the S&P/TSX Composite Index yesterday.

Eldorado Gold (TSX: ELD) rose 7.6% to a 52-week high, representing a gain of almost 105% so far this year as investors eye the possibility of a more pro-business government in Greece following the July 7 elections, which could address the miner's long-running permitting problems.

The gold sector was performing strongly in afternoon Australian trade, up a collective 2%.

Producer St Barbara (ASX: SBM) was up 4.5% as it recovers some lost ground but remains down about 31% year-to-date.

Newmont Goldcorp (NYSE: NEM) gained 1.4% yesterday in New York yesterday.

Toronto and key European market indices were looking positive but the US was pointing lower, ahead of an early close today and tomorrow's Independence Day holiday.