Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed with a gain of more than $10 an ounce Tuesday, helped by renewed concerns about European sovereign debt and by increased seasonal demand for physical bullion. Gold for February delivery climbed $10.20, or 0.7%, to settle at $1,384.30 an ounce on the Comex division of the New York Mercantile Exchange. The contract, which had touched a high of $1,386.80 during the trading session, ended at its highest level in just more than a week. �Concerns about inflation, credit bubbles and the growing likelihood that the Eurozone debt crisis will deepen is leading to continuing safe haven demand for gold � particularly in India, China and wider Asia,� analysts at GoldCore wrote in a daily newsletter.

In Portugal, officials said Tuesday that the nation�s deficit in 2010 was below the 7.3% target set as a proportion of gross domestic product and down from 2009�s 9.3%. The country has no need to ask for financial assistance, said Jose Socrates, prime minister of Portugal, in a statement. See more on markets� reactions on the eve of pivotal Portugese bond auction. It marked a reversal from Monday, when markets were abuzz with speculation that Portugal was next in line to receive a bailout from the European Union and the International Monetary Fund. Gold has benefited from these fears. See full story.