Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Friday to their highest level in more than three months as investors sought the safety of the metal following government data that showed the U.S. economy contracted the most in 27 years during the fourth quarter. Gold for February delivery was last up $19.90, or 2.2%, to $925 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $928.10 earlier, the highest intraday level for a front-month contract since Oct. 10, when gold rose to as high as $936.30.

Rising demand for the metal has pushed holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by gold, to a new record level. The benchmark contract has risen 3.2% so far this week and 4.7% this month. "Demand remains very high internationally for ETFs, gold certificates and bullion coins and bars," said Mark O'Byrne, executive director at Gold and Silver Investments. We've seen "continuing safe haven demand for gold" due to "sharp deterioration in the global economy." See full story.