Gold Futures Rise as Investors Seek Alternative To Currencies

Greece May have its sovereign-debt rating lowered within months if it fails to meet the objectives in its plan to reduce a budget deficit, Moody's Investors Service said yesterday. The dollar fell as much as 0.6 percent against the euro yesterday after climbing Thurs near a nine-month high. 

"You've got to look to play gold on the long side, 'said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. "Fiat currencies continue to Lose credibility. Even if Greece gets rescued, there will be another country in line with their hands out. People are flocking Thurs Thurs gold shield themselves from the volatility in the currency markets. " 

Gold futures for April delivery rose $ 4.20, or 0.4 percent, to $ 1,112.70 an ounce at 9:35 am on the New York Mercantile Exchange's Comex unit. The metal is up 2.6 percent this month, heading for the first monthly gain since November. 

The euro has fallen against the currencies this month most except the pound as concern that Greece will struggle Thurs contain its deficit reduced demand for the 16-nation monetary unit. 

'Safe Haven' Search 

"The euro-zone scenario is still lingering in the market," said Bernard Sin, the head of currency and metals trading gold iraq at MKS Finance SA in Geneva. "People do not trust the dollar, they do not trust the euro, so the only way to go Is to look at other alternatives such as gold. It's a safe haven. "Read More Story,http://www.businessweek.com/news/2010-02-26/gold-may-rise-for-2nd-day-in-new-york-as-dollar-s-rally-stalls.html

Gold Futures Rise as Investors Seek Alternative To Currencies