Capital Gold Group Report: Gold prices highest since December on euro zone debt fears

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By Claudia Assis & Kate Gibson, MarketWatch

April 28, 2010, 4:55 p.m. EDT

SAN FRANCISCO (MarketWatch) -- Gold futures finished at their highest since early December and notched a fourth consecutive winning session Wednesday as a debt ratings downgrade for Spain reignited fears of a spreading sovereign debt crisis in Europe.

Gold for June delivery gained $9.60, or 0.8%, to $1,171.80 an ounce on the Comex division of the New York Mercantile Exchange, the highest close since early December.

"Gold is riding the coattails of its role as the currency of fear," said Richard Ross, a technical analyst with Auerbach Grayson in New York.

Prices had bounced between gains and losses in early Wednesday trade. They got a decisive push upward as market stumbled on news that Standard & Poor's had downgraded Spain's debt a day after it downgraded bonds from Portugal and Greece.

Gold has ignored a stronger dollar in its march upward. That "just reinforces the notion that there are a lot more reasons to own gold" and bullion is likely the main beneficiary of the latest financial storms, he added.


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This page contains a single entry by J. Ryman published on April 29, 2010 3:31 PM.

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