Daily Gold Update

Source:MarketWatch

New York— Gold futures rose Tuesday, as news that the government may order 10 banks to boost capital levels fueled fresh financial worries, increasing gold's appeal as a safe asset. Copper fell for the first session in five. Gold for June delivery climbed $2.10, or 0.2%, to end at $904.30 an ounce on the Comex division of the New York Mercantile Exchange. It rose 1.6% to $916.70 earlier in the session. The contract pared its gains in afternoon trading as the dollar moved higher.

"The choppy nature of this market is due to partial holidays still going on overseas and the dollar movements," said George Gero, a precious-metals trader for RBC Capital Markets. Investors in London returned from a long holiday weekend Tuesday while trading in Tokyo was still closed until Thursday for Golden Week. Trading in South Korea was also closed for the Children's Day holiday. Helping set the trading tone in metals Tuesday, U.S. officials are expected to direct about 10 of the 19 banks undergoing government stress tests to boost capital. See full story.