Daily Gold Update

Source: Marketwatch

New York— Gold futures rose on Monday after Moody's Investors Service said risks are growing for the ratings of the four largest AAA-rated economies — the United States, the United Kingdom, Germany and France — leading investors to seek shelter in gold. "Sovereign-debt issues and currency risk remain prevalent and look set to keep gold buoyant for the foreseeable future," analysts at GoldCore wrote in a note. "Indeed, gold is increasingly being seen as a safe-haven currency." Gold for April delivery gained #3.70, or 0.3%, to end at $1,105.40 an ounce at the New York Mercantile Exchange. The yellow metal fell 2.4% last week.

The Moody's report, meanwhile, helped offset the impact of a stronger dollar, which typically reduces gold's appeal as an alternative to the currency. The dollar, which has served as a safe haven since the credit crisis began, also rallied on the back of the Moody's report. See full story.