Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Wednesday, nearing the highest levels of the year, as the U.S. dollar fell versus the euro, making the precious metal more attractive as an investment alternative. Gold for April delivery rose $5.90, or 0.5%, to $1,143.30 an ounce. It earlier rose as high as $1,145.80, the loftiest level seen since Jan. 11, when it closed at $1,151.40 an ounce, the high for 2010.

In foreign-exchange dealings, the dollar fell against the euro after Greece outlined further austerity measures to rein in its deficit. The euro climbed to $1.3720, up from $1.3608 in North American trading late Tuesday. Analysts also noted that SPDR Gold Trust, the largest exchange traded fund backed by the metal, posted inflows for the first time in two weeks on Tuesday. The fund said it raised its holdings by 4.6 tons to a total of 1,111.6 tons. "Alongside the currently robust jewelry demand from India and the high interest of speculative financial investors, ETF demand could also support the gold price in holding up against the firm U.S. dollar and in advancing toward the $1,200 an ounce mark," said analysts at Commerzbank. See full story.