Daily Gold Update

Source: Marketwatch

New York— Gold futures rose on Thursday as traders assessed movements in the dollar, which came under pressure after a round of disappointing U.S. economic reports on retail sales and joblessness. Gold and the greenback have had a strong inverse correlation: When the dollar declines in value, gold prices tend to rise. Gold for February delivery finished with a gain of $6.20, or 0.5%, at $1,143 an ounce at the New York Mercantile Exchange. It earlier rose as high as $1,146.70 and fell to a low of $1,130.70, according to FactSet Research.

The precious metal had opened under pressure with traders' attention firmly on slight dollar strength, according to RBC Capital Markets. The dollar briefly surrendered gains after new retail sales unexpectedly fell 0.3% last month and initial jobless claims last week totaled 444,000, near the highest in almost a month. But it turned up again after European Central Bank President Jean-Claude Trichet said the economic recovery in the euro zone will remain uneven and that a strong dollar was important, according to Action Economics. The dollar index, which measures the U.S. unit against a basket of six major currencies, stood at 76.96. See full story.