Daily Gold Update

Source:Bloomberg

New York— Gold futures rebounded from the biggest decline in two weeks as investors bought the precious metal as a haven against financial turmoil in Europe. The euro dropped to the lowest level since March 2009 against the dollar on concern that Greece�s fiscal crisis will spread to other nations in Europe. Global equities slumped for a second day, and the Reuters/Jefferies CRB Index of 19 commodities dropped as much as 1.9 percent. Gold has climbed 30 percent in the past year. �It�s all about relative value,� said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. �When everything stinks, what stinks the least is gold. Gold will be one of the first things to come back.�

Gold futures for June delivery rose $5.80, or 0.5 percent, to $1,175 an ounce on the Comex in New York. The metal fell 1.2 percent yesterday, the biggest decline since April 16, after touching $1,192.80, the highest level for a most-active contract since Dec. 4. �Investors have no alternative but to put their money in dollars and gold,� said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. See full story.