By Matt Day Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Gold futures reclaimed the $1,500 mark Tuesday as traders viewed Friday's slide to six-week lows as an opportunity to buy with concern about Europe's debt crisis and the stumbling U.S. economy continuing to underpin demand for the metal as a refuge. The most actively traded contract, for August delivery, was recently up $27.40, or 1.9%, at $1,510 a troy ounce on the Comex division of the New York Mercantile Exchange. Comex floor trading was closed Monday for the U.S. Independence Day holiday. "Concerns over Chinese inflation and worries over the U.S. economy, as we approach the release of nonfarm payrolls numbers, are keeping investor interest in gold alive," Standard Bank analyst Marc Groud said in a note. Worries about China's efforts to cool it's rapidly growing economy and recent weak readings on the U.S. economy have increased the appeal of refuge assets such as gold, which some investors view as a store of value during market turmoil. The metal is likely to see refuge buying this week in anticipation of Friday's closely watched monthly U.S. employment report, market participants said. Gold futures Friday settled at their lowest prices since mid-May, pressed by easing worry about European debt after Greece approved a package of austerity measures, easing the risk of a default there. Worries about euro-zone debt has helped propel gold to record highs during the last year. But the Greek debt crisis is far from over, and the chance of further turmoil in Europe's currency union continues to lend support to gold. Standard & Poor's Corp. Monday said a proposal to allow Greece more time to work out its fiscal problems would likely place the country in "selective default." Euro-zone officials have worked to structure a financing package for the country that wouldn't lead to a default. Any consensus by major ratings agencies that Greece was in default would further impair Greece's ability to borrow and could threaten the fiscal stability of other debt-laden European countries. Friday's lows in gold came after speculative investors slashed their bullish bets in Comex futures and options for the metal, paring their net long position by 17% during the week ended June 28, according to Commodity Futures Trading Commission data. The net long is the difference between the number of long positions, or bets prices will rise, and short positions, or bets prices would fall. Other precious metals traded in New York also rose Tuesday. Silver for September delivery was recently up 3.7%, at $34.945 a troy ounce. October-delivery platinum was up 1% at $1,733.90 a troy ounce, and palladium for September delivery was up 1.8%, at $770.80 an ounce. -By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

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