Gold futures rose for the second straight session on demand for a haven amid escalating European-debt woes. Gold futures for February delivery rose $6.90, or 0.5 percent, to settle at $1,386.10 at 1:30 p.m. on the Comex in New York. On Friday, the metal climbed 0.6 percent. The price has gained 26 percent this year.
The euro dropped as much as 0.7 percent against the dollar. Costs to insure French government debt rose to a record after rating companies downgraded the creditworthiness of Ireland. Gold reached an all-time high of $1,432.50 an ounce on Dec. 7 and is heading for a 10th annual gain.
“You still have currency volatility and European-debt problems are simmering, so gold is still a viable asset,” said Frank Lesh, a trader at FuturePath Trading in Chicago.
Moody’s Investors Service lowered Ireland’s credit rating by five levels to Baa1 on Friday, the day after it placed Greece on review for a possible downgrade. Gold priced in euros climbed to a record on Dec. 7.
Dennis Gartman, an economist and editor of the Suffolk, Va.-based Gartman Letter, has recommended owning gold priced in foreign currencies this year.
“In every instance, owning gold in euros or sterling or yen has proven better than owning gold in dollars,” Gartman said Monday in his newsletter.
