Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed higher Monday, topping $1,790 an ounce, as ongoing concerns over the euro-zone debt crisis and reports that Germany rejected calls to use its gold reserves to help shore up the region�s rescue fund helped boost prices. Gold for December delivery rose $35, or 2%, to settle at $1,791.10 an after reaching a session high at $1,794. It was the highest close for a most-active contract since Sept. 21. �The reports that German gold reserves will be untouchable in any rescue plan certainly gave gold a big boost today,� said Brien Lundin, editor of Gold Newsletter. �I don�t believe this was a widely considered risk factor for gold, but the vote of confidence added more momentum to the metal�s recent positive trend.�

Leaders at the Group of 20 summit in Cannes, France, had floated the idea over the weekend that the Bundesbank�s gold reserves could be used to underpin the European Financial Stability Facility, according to news reports. But reports said the plan was a quickly rejected by senior German officials, with Economy Minister Philipp Roesler saying Monday that the country�s gold reserves with the central bank �remain untouchable.� �Gold is money and now that we�ve heard that the German economy minister concurs that gold can�t be touched, that theory is reinforced,� said Mark Leibovit, chief market strategist at VRTrader.com. See full story.