March 15 (Bloomberg) -- Gold rose in New York, rebounding from the biggest weekly loss in more than a month, on speculation that sovereign-debt concerns will boost demand for the metal as an alternative to holding currency.

The euro fell as much as 0.9 percent against the dollar after the finance ministers of Germany and France ruled out a decision today on helping Greece manage its fiscal difficulties. Moody’s Investors Service said the U.S. and the U.K. have moved closer to losing their Aaa credit ratings.

“Gold is a good spot to be parking your money for the time being,’ said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. “Gold has that flight-to-safety aspect to it. It’s going to hold its value.”

Gold futures for April delivery rose $3.70, or 0.3 percent, to $1,105.40 an ounce on the Comex in New York. The metal fell 3 percent last week, the most since Jan. 22.

Greece is seeking to narrow a budget deficit that is the widest gap among the 16 nations that share the euro. Gold priced in euros reached a record on March 5.

Under a so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any top-rated country except the U.K., Moody’s said today in a report. The U.S. will be the biggest spender through 2013.

Read more

www.businessweek.com/news/2010-03-15/gold-prices-rise-in-n-y-on-demand-for-alternative-to-currency.html

Related