Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures surpassed the $1,500-an-ounce mark on Friday, as euro-zone debt fears resurfaced and trumped a rising dollar ahead of regional elections in Spain. Gold for June delivery added $16.50, or 1.1%, to $1,508.90 an ounce on the Comex division of the New York Mercantile Exchange. That marked gold�s first settlement above $1,500 since May 12, and the highest for a most-active gold contract since May 10. Gold finished the week up 1%. July silver also settled higher, gaining 16 cents, or 0.4%, to $35.09 an ounce. Silver gained 0.3% on the week.

�It�s flight to safety,� said Frank Lesh, a broker and futures analyst with FuturePath Trading in Chicago. �If you are holding euros … you�d like to have something else.� The single currency lost against the dollar as concerns surfaced that potential new regional governments in Spain could unearth more debt problems and change the political landscape in the key euro-zone periphery country. Spain�s economy is bigger than the economies of Portugal, Ireland and Greece combined. Those three countries have asked for bailouts in the face of rising debt imbalances. See full story.