Gold Gains From Safe-Haven Status Before Greek Elections (Update1)

(Updated from 12:48 p.m. with settle prices.)

NEW YORK (TheStreet) -- Gold prices climbed Friday as investors looked to the precious metal as a safe haven ahead of Greece's unpredictable elections.

Gold for August delivery settled up $8.50 at $1,628.10 an ounce at the Comex division of the New York Mercantile Exchange. It traded as high as $1,635.40 and as low as $1,620.40 during the session, while the spot price jumped $4, according to Kitco.com.

"Gold investors in the euro zone rushed to add to positions prior to Sunday as Greece elections start at 7 a.m. for 12 hours, and gold is liquid, portable and convertible into any currency," George Gero, precious metals strategist at RBC Capital Markets, wrote in a Friday note. "Therefore, it's desired by investors as a haven for whatever transpires this weekend."

Silver settled higher by about 33 cents at $28.74, while the U.S. dollar index was down 0.31% at $81.63.

Uncertainty about the Spanish bank bailout's efficacy and rumors of possible coordinated central bank easing have also driven an uptick in gold prices.

"I think we have a lot more trouble in Europe still brewing and the central banks are being smart for the way they speak to the public about it, but I still think Spain is in big trouble," said Yoni Jacobs, chief investment strategist at Chart Prophet. "Right now we kind of have temporary solutions to these massive problems, and quantitative easing could help maybe in the short term."

Jacobs said he thinks that if gold can't stay above $1,600, it could resume a downward trend.

Gero wrote that gold could jump to the upside if it closes over $1,650, but traders would likely be prepared to sell if it finished below $1,580.

Among gold miners, Kinross Gold (KGC) was rising to $8.86, up 16 cents, or 1.8%, while Yamana Gold (AUY) was dropping to $15.96, down 34 cents, or 2.1%.

Goldcorp (GG) was falling 1.4% to $39.10, while Eldorado Gold (AEM) was rising 1.6% at $12.78.

-- Written by Joe Deaux in New York.

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