New York Gold Futures Rise on Economy Uncertainty

Gold market in New York gained as economy uncertainty boosted the appeal of the precious metal as a store of value.

Gold futures for June delivery rose 9.80 U.S. dollars, or 1.1 percent, to 892.50 dollars an ounce on the New York Mercantile Exchange.

The International Monetary Fund said Wednesday that the world economy will shrink 1.3 percent this year, compared with its January projection of 0.5 percent growth.

Morgan Stanley reported its second-straight quarterly loss and slashed its dividend. General Motors executive said the automaker doesn't plan to make a 1 billion dollars payment due June 1 to bondholders, which pumped up the flight to quality sentiment in the gold market.