Daily Gold Update

Source: Marketwatch

New York— Gold finished up slightly after a volatile session on Tuesday, with dollar strength continuing to cap gains in the precious metal but with traders seeking support levels after gold's inability to hold the $1,000 mark. After trading lower for most of the session, gold futures benefited from a late surge, with the December contract finishing up 30 cents at $994.40 an ounce on the Comex division of the New York Mercantile Exchange. It earlier fell to an intraday low of $986.10 an ounce and rose to a high of $997.20.

"The erratic nature of the dollar, at the moment, means that gold may still have its direction dictated by dollar volatility and traders may exploit this and push the limits of gold support in the short term, looking for favorable entry points," said analysts at GoldCore in a note. On Tuesday, the dollar gained ground especially against the Japanese currency after the nation's finance minister hinted at the possibility of intervention to arrest the yen's rise. But gains tapered off in afternoon trade. The dollar index, which measures the U.S. unit against a basket of six major currencies, recently stood at 77.096, up from 76.904 late Monday but off earlier highs at 77.33. See full story.