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Gold rises as Italian debt fears grow

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Gold edged higher on Wednesday on persistent doubts about Italy's ability to tackle its growing debt crisis as political uncertainty and soaring Italian bond yields prompted caution among investors. Italian Prime Minister Silvio Berlusconi, viewed by many in the markets as an obstacle to economic change, has pledged to resign after parliament passes budget reforms but his exit as leader of the euro zone's third-largest economy raised questions about a successor and possible political instability. A failure by Italy to fix its debt problems would have a far bigger impact on the region than difficulties in Greece. Gold rose 0.4 percent to $1,791.15 an ounce by 16:22 SA time from $1,784.85 late...

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