gold rises on safe-haven flow, credit fearsMon Apr 20, 2009 10:42am EDT
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NEW YORK, April 20 (Reuters) - U.S. gold futures rose
nearly 2 percent on Monday as safe-haven demand related to
renewed credit worries more than offset lower investment
interest in gold exchange-traded funds. For the latest detailed report, click on [GOL/]. GOLD * Gold for June delivery GCM9 rose $14.30, or 1.7
percent, at $882.20 an ounce at 10:19 a.m. EDT (1419 GMT) on
the COMEX division of the New York Mercantile Exchange. * Ranged from $865.60 to $884.70. * June futures jumped as U.S. stocks broadly dropped more
than 2 percent, stirred by worries that problems would persist
for the struggling banking sector. * U.S. financial shares were heavily sold on Monday, as
Bank of America (BAC.N) posted a big increase in troubled
loans, and its CEO said "credit quality will get worse before
it will eventually stabilize and improve." * Gold supported as financial fears returned, but a
stronger dollar kept the metal from rising further - George
Gero, vice president of RBC Capital Markets Global Futures. * Bullion prices may rise this week because of Akshaya
Tritya festival, India's gold-buying festival, on April 27 -
analysts. * The futures market largely ignored news that the SPDR
Gold Trust ETF GLD saw its largest two-day outflow since
early September last week, with its total holdings falling for
a second day on Friday. [GOL/SPDR] * Noncommercial net long positions rose 2,083 to 129,895
lots, while open interest fell 2.3 percent to 336,930 contracts
in the week up to April 14 - CFTC report. * Gold also rose in spite of a more than 7 percent decline in crude oil prices on worsening economic outlook. * Gold/oil ratio at 18.8 on Monday, compared with 17.3 in the previous session. * Spot gold <XAU=> traded at $880.75 an ounce, up 1.5
percent from its late Friday quote in New York. * The London afternoon gold fix <XAUFIX=> was $877.00 an
ounce