Daily Gold Update

Source:Marketwatch

New York— Gold prices eked out gains on Tuesday as tensions on the Korean peninsula and worries about Europe sparked safe-haven bullion buying. Gold for June delivery, the most active contract, rose $4, or 0.3%, to $1,198 an ounce on the Comex division of the New York Mercantile Exchange. "It's renewed flight-to-quality buying," said Matt Zeman, a trader at LaSalle Futures Group in Chicago. Gold is off $45 since its peak on May 12 and "the sell-off was a little bit overdone," attracting the bargain hunters, he added. "Gold is in one of the strongest technical positions among all asset classes amid all this volatility," said Richard Ross, a technical analyst with Auerbach Grayson in New York.

Rising tensions on the Korean peninsula sent stock markets roiling worldwide, with the Dow Jones Industrial Average falling below 10,000 for the first time since February. Oil lost nearly 2% and the geopolitical concerns spurred a flight to the dollar. North Korea's Kim Jong-il has reportedly ordered the North Korean security agencies and the all-civilian People's Army to be ready for combat. See full story.