Daily Gold Update

Source: Market Watch

SAN FRANCISCO— Gold settled at a four-month high Friday, clocking in a 2.3% gain in a week marked by rising concerns about a spreading sovereign debt crisis in Europe and as investors sought out gold and other metals as a hedge against currency weakness. Gold for June delivery, the most active contract, added $11.90, or 1%, to settle at $1,180.70 an ounce on Comex – a stone's throw from an early December high around $1,220 an ounce for a most-active contract. As a reflection of investors eagerness to load up on gold and other metals, physical holdings in exchange-traded funds backed by gold hit records this week, analysts at Barclays Capital said. Gold prices gained 6% in April.

The big thing today is that gold held above the $1,160 level," which it had tried to pierce in recent days and failed, said Matt Zeman, a trader at LaSalle Futures Group in Chicago. "We did see it break through. It looks very bullish to me and looks like it's going to keep working its way higher. We may see going to $1,200 in the next couple of sessions." Gold got a boost from fears and uncertainty still surrounding Greece and its rescue package, expected to be finalized this weekend, and from "investors feeling like taking on a little more risk today," said Zeman. A weaker dollar also helped, he added. "Gold has continued to benefit from safe haven flows and perhaps more importantly once again decoupled from currency movements similarly to (first quarter 2009) where both the dollar and gold drew safe haven interest," the analysts said. See Full Story