Daily Gold Update

Source: MarketWatch

New York— Gold futures surged Monday amid worldwide stock plunges, rallying 4% as concerns that a massive bailout plan may not be enough to rescue the financial market boosted demand for gold as a safe haven. Congress passed a revised version of the $700 billion massive rescue plan Friday to bail out the ailing financial industry, but the move didn't calm investors. Major European countries offered no pan-European plan for dealing with troubled banks. Stock markets around the world slumped Monday, while credit markets continued to tighten.

"Of most concern to the markets is the question of whether the recent bailout bill will be enough to break the logjam in the credit markets," wrote Edward Meir, a commodities analyst at futures brokerage MF Global. "It seems the markets are answering our last question with a resounding no." Gold for December surged $33 to $866.20 an ounce on the Comex division of the New York Mercantile Exchange. Investors tend to seek safety in gold when the economy falls into turmoil. "Gold's ultimate status as a safe-haven asset is showing its luster again as the financial crisis escalates," said Peter Spina, President of GoldSeek.com. "Paper money from all walks of life is flowing into gold as uncertainty and fear rocket to new heights." See full story.