Daily Gold Update

Source: Marketwatch

San Francisco— Fears of rampant inflation and U.S. dollar weakness added fuel to gold�s fire on Friday, pushing the metal to a record high, and took silver to a close above $40 an ounce, its first in three decades. Oil rallied, spurring the worries about price increases, and the dollar sank on concerns about a looming U.S. government shutdown. Gold for June delivery advanced $14.80, or 1%, at $1,474.10 an ounce on the Comex division of the New York Mercantile Exchange, a settlement record. Bullion traded as high as $1,476.20 an ounce, an intraday record high.

Gold had reached such milestones the previous four sessions. The metal rose 3.2% on the week, its highest five-day gain since early December and its third weekly gain in a row. �Two words, the dollar and inflation,� said Frank Lesh, a broker and analyst with FuturePath Trading in Chicago, of gold�s rally. �I�ll tell you when it will correct: when the dollar quits going down. This tit for tat in Congress right now just makes us look bad, and it�s reflected on the dollar.� See full story.