Daily Gold Update

Source: MarketWatch

New York— Gold futures extended gains Wednesday, climbing above $940 an ounce to their highest level in nearly seven months, as investors continued to buy the metal amid doubts on new economic rescue plans unveiled in the U.S. Gold for February delivery ended up $30.10, or 3.3%, at $943.80 an ounce on the Comex division of the New York Mercantile Exchange, the loftiest closing level for a front-month gold future since July. Trading more actively, the April contract rose 3.3% to $944.50 an ounce. Gold gained more than 2% in the previous session after Treasury Secretary Timothy Geithner introduced a new plan to rescue the ailing banking sector. The Senate also passed an $838 billion stimulus package Tuesday by a 61-37 vote.

Markets, however, cast doubts on the plans. Stocks and crude-oil prices tumbled, while safe-haven buying pushed up gold and Treasury securities, as well as the U.S. dollar. After breaking the $940 mark, gold could rise to as high as $950 an ounce in the short term, said Ashraf Laidi, chief market strategist at London-based CMC Markets. Most analysts are projecting gold to rise above $1,000 this year, as safe-haven buying and demand for gold as a hedge against inflation are expected to continue. See full story.