Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures found firmer footing on Tuesday, overcoming a lukewarm start of the session, where it fluctuated between small gains and losses, to end at its best in more than a week. Dollar weakness and a rise for stocks and other commodities helped prices along, although analysts said volumes were low. Gold rallied 1.5% in the previous session. Gold for December delivery added $2.60, or 0.2%, to end at $1,713.40 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s highest settlement since Nov. 18. �People came back from the Thanksgiving holiday with an appetite for risk,� said Richard Ross, a technical analyst with Auerbach Grayson in New York. �Gold remains in a strong technical position.�

�The trade remains extremely choppy while intraday volatility is also exaggerated in thin trading volumes … despite gold�s still fairly strong correlation to the broader equity and commodity market, market participants remain reluctant to liquidate in large volumes amid ongoing uncertainty� about the euro zone, analysts at VTB Capital said in a note to clients. Gold has tracked U.S. stocks and other raw materials such as oil in recent months, losing some of its safe-haven allure as the crisis in Europe deepened and investors fled to U.S. bonds and the dollar. See full story.