Gold prices rose 0.5 percent in Europe on Monday after news that Dubai had averted a debt default sharpened appetite for risk, pressuring the dollar and boosting higher-yielding currencies such as the euro. In New York, gold for current delivery closed at $1,123.40 per troy ounce Monday on the New York Mercantile Exchange, up from $1,119.40 late Friday. US gold futures for February delivery on the COMEX division of the New York Mercantile Exchange rose $1.30 to $1,121.20 an ounce. Dubai said on Monday it had received $10 billion from Abu Dhabi to help it repay a $4.1 billion Islamic bond. The announcement lifted assets perceived as higher risk, such as stocks and higher-yielding currencies, and pressured the dollar. “Stock markets have recovered and that indicates that at least a little more risk taking is coming back into the market,” said Peter Fertig, a consultant at Germany's Quantitative Commodity Research.
