GOLD rebounded from one-week lows yesterday, as safe- haven buying returned after a sell-off in commodities and other assets as the euro fell against the dollar on fears euro-zone debt problems will spread. Stocks fell, the cost of insuring Portuguese government debt against default rose to a record high, and Bund futures hit their highest since early March last year after Moody’s said Portugal was on review for a possible downgrade.
Spot gold was bid at 1173,25/oz by late afternoon from 1170,65. US gold futures for June delivery on the Comex division of the New York mercantile exchange were at 1173,80/oz.
“Gold is actually holding up remarkably well in the face of what is a very strong dollar move against the euro,” Daniel Major of RBS said. “The market as a whole is running scared, and it is safe-haven buying that is supporting gold.” Reuters
