Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures gained Tuesday, helped by a weaker U.S. dollar and as ongoing worries about euro-zone debt spurred investors to the perceived safety of the metal. Gold for June delivery added $7.90, or 0.5%, to $1,523.30 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s best settlement since May 3 and the third time above $1,500 an ounce. The lingering debt concerns have pushed investors toward �a paperless currency,� said Adam Klopfenstein, a senior market strategist with Lind Waldock in Chicago. With the recent �whipsaw� between the dollar and the euro, �investors are looking for something more stable and not tied to any one currency,� he added.

Gold is still profiting from uncertainty, analysts at Commerzbank wrote to clients. Demand from exchange-traded funds have driven the recent price rally, they said. Holdings in SPDR Gold Trust, the largest ETF backed by gold, rose 18 metric tons Friday and Monday to 1,209 metric tons. But investors appeared to be more �skeptical� of silver, the Commerzbank analysts added, as the main ETF backed by silver, iShares Silver Trust, lost 15 tons Monday to end the day with 10,137 metric tons. Silver for July delivery added $1.22, or 3.5%, to $36.13 an ounce. See full story.