Daily Gold Update

Source: Bloomberg

New York— Gold rose for a second straight day on speculation the recession will deepen, boosting the appeal of the precious metal as a haven asset. Silver also gained. Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, rose to a record 1,008.8 metric tons yesterday. Gold has gained 11 percent this year while the Reuters/Jefferies CRB Index of 19 commodities is down 12 percent and the Standard & Poor�s 500 Index has dropped 13 percent. �Investor confidence is extremely shaky,� said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. �People are still flocking to gold for its perceived safety.�

Gold futures for April delivery climbed $10.70, or 1.1 percent, to $978.20 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $980.20, the highest since July 16. Gold gained 5.5 percent last year. Silver futures for March delivery rose 28 cents, or 2 percent, to $14.29 an ounce. The metal has gained 27 percent this year after dropping 24 percent in 2008. See full story.