Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures rallied Wednesday, as hopes for a resolution of Europe�s sovereign-debt crisis and a lower dollar supported the metal. Copper jumped 3.1%. Gold for December delivery GC1Z -1.28% added $21.60, or 1.3%, to settle at $1,682.60 an ounce on the Comex division of the New York Mercantile Exchange. It had earlier traded as high as $1,693.90 an ounce and as low as $1,662 an ounce. The rally for gold came as investors were more optimistic about the euro zone�s plan to recapitalize banks, said Tom Pawlicki, a metals analyst with MF Global in Chicago.

The hopes Europe will be able to keep its sovereign-debt woes under control grew as European Commission President Jose Manuel Barroso on Wednesday outlined the bank support plan. On Wednesday, Slovakia�s political parties reached an agreement that will allow the nation�s parliament to approve enhancements to the fund. Another ray of hope for gold has come from recent data from the U.S. Commodity Futures Trading Commission, Pawlicki said. Data Friday showed fund managers have started to modestly move back to gold. See full story.