Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Monday, marking one of the best months in 10 years, as continued weakness in the U.S. dollar boosted gold's appeal as a hedge against a weaker currency. The dollar weakened as concerns eased over Dubai's debt problem, and as upbeat economic data in the Chicago region reduced investors' appetite for the greenback. December gold futures rose $6.90, or 0.6%, to end at $1,181.10 an ounce on the Comex division of the New York Mercantile Exchange. It had climbed to a record high near $1,188 an ounce last week. Gold has seen only three losing sessions in November. The metal rose 13% in November, the biggest monthly gain since November 2008. Futures soared 14% in that month, the biggest gain since 1999.

Gold futures have soared 33% this year, and have made gains in 17 out of the past 20 weeks. "The gold price rally in November was driven by a perfect storm of cyclical and structural factors," said Nicholas Brooks, head of research and investment strategy at ETF Securities, which sponsors the Swiss-based gold ETFS Gold Trust. "The continued weakening of the U.S. dollar" and "the renewed buying of gold by central banks eager to bring down their exposure to the U.S. dollar" helped push up gold prices, he said. See full story.