Gold Rises as Greece Downgrade Boosts Demand for a Haven Asset
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Gold futures rose the most this month after Fitch Ratings cut Greece’s credit rating, boosting the appeal of the precious metal as a haven asset.
The euro tumbled as much as 1.2 percent against the dollar after Fitch said a “soft” restructuring of Greece’s debt by European Union policy makers would be considered a default. Europe’s financial crisis, accelerating inflation and fighting in Libya have helped extend gold’s rally into an 11th year, with prices reaching a record $1,577.40 an ounce on May 2.