Gold Rallies Back Above $1180 over Greece Fears

Gold jumped 1 percent on Monday as investors sought safety in the metal after the Greece debt crisis took a turn for the worse over the weekend, with Athens looking more likely to default and exit the euro zone.

Spot gold was up nearly $11 to $1,185.20 an ounce by 0030 GMT, after reaching $1,186.91 earlier in the session, its highest in nearly a week.  U.S. gold futures also jumped 1 percent to a session high of $1,187.60.

Bailout talks between the Greek leftwing government and foreign lenders broke down over the weekend and the European Central Bank froze vital funding support to Greece’s banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing.