Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures rose to a record high Tuesday, shaking off early weakness to find firmer footing in fears of a potential U.S. government shutdown, conflict in the Middle East and North Africa, and Europe�s sovereign debt crisis. Gold for June delivery rose $19.50, or 1.4%, to $1,452.50 an ounce on the Comex division of the New York Mercantile Exchange. Tuesday�s nominal record came two sessions after the metal last reached the milestone. But Tuesday�s session had already made history. Prices rose as high as $1,455.50 an ounce, an intraday record for gold. The metal had last reached an intraday best on March 24, when it traded as high as $1,448.60 an ounce.

In addition to all the overseas reasons to seek safety in gold, investors also flocked to the metal on fears that the U.S. government may run out of money by Friday if parties don�t reach an agreement about the federal budget, said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. �A lot of people are uncomfortable with going into that without some safety net,� he said. �People want some protection� and traditionally gold is seen as both a storer of wealth and a safe haven from turmoil, he added. Moody�s Investors Service pegging Portugal�s bailout as �inevitable� fueled the rally in both gold and silver, said Jeffrey Clark, an analyst with Casey Research. See full story.