Daily Gold Update

Source: Marketwatch

New York— Gold futures settled at a fresh four-month high Friday as prices overcame a weak start to push higher on rekindled concerns about the global economic recovery. Gold for June delivery, the most active contract, added $9, or 0.8%, to end at $1,161.90 an ounce on the Comex division of the New York Mercantile Exchange, the highest for a most-active contract since December 7. The contract earlier touched a four-month intraday high, trading at $1,166.20 an ounce, the highest intraday for that contract since Dec. 4. For the week, gold posted an impressive 3.2% gain. Gold for June delivery ended at $1,126.10 an ounce on April 1.

Gold futures started the session in the red as physical buyers were away due to the higher prices, analysts said. But a downgrade for Greece heightened concerns about the euro-zone countries and the global economic recovery, giving prices a decisive upward push. Fitch Ratings on Friday downgraded Greece's credit ratings to the lowest ring of investment-grade ratings, BBB minus. "The whole Greek story has been supporting gold for some time now," said Walter de Wet, an analyst with Standard Bank in London. "The major concern is not just Greece, but if it is not going to be easy for Greece, what's going to happen if someone else has trouble?" Dollar weakness also played a role in gold's winning streak, de Wet said. For the upcoming week, markets are going to be testing the $1,163 resistance level, he added. See full story.