Daily Gold Update

Source: Marketwatch

New York— Gold prices went from red to rallying Monday amid lingering concerns about the health of the world economy, briefly topping their May 12 record before settling a couple dollars short of that high mark. Gold futures for August delivery, the most active contract, added $23.10, or 1.9%, to settle at $1,240.80 an ounce on the Comex division of the New York Mercantile Exchange – $2.30 from their May 12 settlement record of $1,243.10. The contract set an intraday high of $1,243.30 an ounce in electronic trading, according to the CME Group, which owns Comex.

"A lot of the momentum players are trying to catch on," said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. Silver tracked gold higher and finished up 5% on Monday. Silver for July delivery added 86 cents to $18.16 an ounce. July copper finished 5 cents off, or 1.9%, to $2.76 a pound – an eight-month low for the metal. "We're seeing a lot of people readjusting their portfolios trying to figure out the best flight-to-quality asset," said Adam Klopfenstein, a trader and senior strategist at Lind-Waldock in Chicago. Gold is the clear winner of the day, winning over U.S. bonds and currencies, as "people are feeling more confident buying gold," he added. See full story.