Daily Gold Update

Source: Marketwatch

New York— Gold futures recovered from a wobbly start Wednesday, settling at a seven-week high and leaving investors with a taste for more to come. Gold for December delivery added $3.10, or 0.3%, to $1,231.40 an ounce on the Comex division of the New York Mercantile Exchange. Gold's fortunes changed about one hour before the end of trading, as prices had opened lower on profit-taking.

"[Gold] remains a global growth story," said Matt Zeman, an analyst at LaSalle Futures Group in Chicago. "We're seeing flight-to-quality trading going on and people coming back to gold." Zeman said he expects the metal to hit new highs in the next couple of weeks. Gold reached a record on June 18, when it settled at $1,258.30 an ounce. Any news about a global slowdown or economic snags in the U.S., Europe or China should provide the needed catalyst, he added. Earlier, the stronger dollar had applied some pressure on gold prices. The dollar index, which compares the U.S. currency to a basket of six other currencies, recently declined 0.1% to 82.17, taking that pressure off. Gold ended Tuesday's floor session up $2.10, or 0.2%, to $1,228.3 an ounce, the highest settlement for a most-active contract since late June. See full story.