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Gold Rebounds as a ‘Proxy for Fear’ Amid Persistent Europe Woes

Gold futures rose for the third time in four sessions on demand for a haven amid persistent concerns that Europe’s debt crisis will hinder the global economy.

Yesterday, Italy’s credit rating was cut for the first time in almost two decades by Moody’s Investors Service, which said that other euro-area nations ranked below the top Aaa level may have their grades lowered amid contagion from the region’s budget woes. Wheat and corn led a rally in raw materials on signs the U.S. may take more step to bolster a recovery.