Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Monday as stock markets and crude-oil futures slumped amid investor cautiousness over the economy and first-quarter earnings at Bank of America, which heightened the metal's appeal as a safe asset. Bargain hunters also stepped in after the benchmark gold contract lost nearly 3% in the past two sessions to move below $870 an ounce, while a stronger dollar kept gold's gain limited. Gold for June delivery rose $14.60, or 1.7%, to stand at $882.50 an ounce on the Comex division of the New York Mercantile Exchange.

Gold moved higher "as financial fears returned," said George Gero, a precious-metals trader for RBC Capital Markets. "Pessimistic outlook for securities brought recent lower gold [prices] within range of investment." Fueling speculation that the economic crisis will linger, the Conference Board said Monday the recession may continue though the summer, though its intensity could ease. The index of leading economic indicators fell 0.3% in March. See full story.