Daily Gold Update

Source: MarketWatch

New York— Gold futures rose back to the $940-an-ounce level Thursday as gloomy U.S. economic data heightened the metal's attraction as an asset that holds value in tough times, but a stronger dollar capped gold's gains. Metals futures maintained broad gains in New York Mercantile Exchange dealings. Coloring the trading action, the number of people collecting state unemployment benefits has reached yet another new record, the Labor Department reported. And the U.S. economy in the fourth quarter contracted at a 6.3% annualized rate, revised data from the Commerce Department showed — less dire than many expected, but still a downward revision.

On the Comex division of the Nymex, gold for April delivery rose $4.20, or 0.4%, to end at $940 an ounce. Some investors buy the precious metal as a hedge against economic troubles. "Overall conditions still appear to favor a push toward higher values over the course of at least the next week," said Jon Nadler, senior analyst at Kitco Bullion Dealers. "The expected economic recovery is currently not being given high odds until sometime in 2010." See full story.