Daily Gold Update

Source: Marketwatch

San Francisco— Gold and silver futures rallied to one-month highs Tuesday as Europe�s disjointed progress toward a debt-crisis resolution gave investors enough reasons to buy precious metals, stoking further gains as prices broke through a recent ceiling. Gold for December delivery ended up $48.10, or 2.9%, at $1,700.40 an ounce on the Comex division of the New York Mercantile Exchange, the highest close for a front-month contract since Sept. 22 and its biggest one-day gain since Sept. 27. Silver for December delivery jumped $1.41, or 4.5%, to $33.05 an ounce, also its highest close since Sept. 22. Conflicting headlines about Europe that both highlighted gold�s allure as a safe-haven asset and currency hedge and alleviated some need to raise cash by selling gold.

At the same time, analysts noted technical trading was likely in play. Gold futures had been bumping up against a ceiling of about $1,683 for the past month. Once prices moved higher intraday, touching $1,704.70 an ounce, people likely realized a new short-term floor had been established. �Gold has kind of been like a sleeping giant for the last month or so,� said Richard Ross, chief technical strategist at Auerbach Grayson & Co. Tuesday�s trading �was really decisive action.� The metal regained at least some of its safe-haven appeal on news that euro-zone finance ministers won�t meet Wednesday, though top leaders will. See full story.