Gold Moves Higher, Seen as Safe-Haven Play

**Barron** · #1 06-25-2012, 06:48 PM

NEW YORK (TheStreet) -- Gold prices were higher Monday as gold offered a haven for investors amid sluggish U.S. economic indicators. Gold for August delivery was rising $5.60 at $1,572.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,577.30 and as low as $1,566.90 during the session, while the spot price declined 70 cents, according to Kitco.com.

"I wouldn't be surprised if we see a little bit of short-covering today, if we don't get the extension downward a lot of it is looking at that European summit that's later on in the week -- that's the primary focus," said Phil Streible, senior commodities broker at RJO Futures. Silver was gaining about 7 cents at $26.74, while the U.S. dollar index was up 0.36% to $82.51.

George Gero, financial consultant at RBC Wealth Management, said he thinks investors will turn to gold as a safe haven this week. "Stocks weak everywhere, gold getting more buyers as economic problems and stress wherever the investor turns, so gold and the dollar are the havens," Gero wrote in a morning note.

**Barron** · #2 06-25-2012, 06:51 PM

By Marke****ch

Spain expects doubts over the nature of Europe's aid to the country's banking industry to be resolved in the coming weeks, Deputy Finance Minister Fernando Jimenez Latorre said Monday.

"Doubt about the preferred nature of this debt persist," Mr. Latorre said at a conference here. "In coming weeks, this doubt will be resolved." He added that it was in the interest both of Spain and of its creditors to remove these doubts.

The Spanish government has formally requested European Union aid to help finance the clean-up of its ailing banking industry, the finance ministry said in a statement Monday.

Earlier this month, Spanish Finance Minister Luis de Guindos reached an agreement with the finance ministers of the 16 other members of the euro area to ask for up 100 billion euros ($126 billion) from EU bailout facilities.

Bond holders are concerned that the EU would get seniority as a creditor to all others, subordinating private-sector creditors and making investors wary of holding Spanish debt.