Daily Gold Update

Source: Marketwatch

San Francisco— Gold and silver futures on Tuesday settled higher for a second day, extending a relief rally on concerns about Greece�s debt woes and the wrangling over the U.S.�s debt ceiling. Gold for June delivery added $13.70, or 0.9%, to $1,516.90 an ounce on the Comex division of the New York Mercantile Exchange. Silver also extended its rebound, with the July contract gaining $1.37, or 3.7%, to $38.47 an ounce. The metal led the commodities� rebound in Monday�s session, closing 5% higher, as concerns about European debt woes at the start of the week heightened the appeal of precious metals.

Such concerns resurfaced since debt ratings company Standard & Poor�s lowered its credit ratings on Greece, reviving debt worries about peripheral euro-zone countries. �With Greece back in the gun sights people are becoming once again worried about euro-zone issues … A Greek restructuring of some type is inevitable at this point,� said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago. In addition, �giving the magnitude of the selloff a relief rally is certainly to be expected,� he said. Caution is still warranted, however, as data out of China later this week could revive fears of new measures to contain inflation and rein in growth in the Asian nation, Zeman added. See full story.