Daily Gold Update

Source:Marketwatch

San Francisco— Gold futures closed higher Friday to log a weekly gain of almost 3%, as weakness in the U.S. dollar and strength in oil prices fueled concerns about inflation. "With increasing doubts about the sustainability of the recent rebound of the dollar and of global stock markets, safe haven demand for gold is likely to reaccelerate in the coming weeks," said Mark O'Byrne, a director at Gold and Silver Investments Ltd., in a note to clients.

Gold for June delivery closed $7.50, or 0.8%, higher at $925.80 an ounce on the New York Mercantile Exchange. The contract closed out last week at $899.90, so it's up 2.9% from a week ago. The dollar slipped modestly against its major counterparts Friday on the heels of strength in oil prices, but the greenback remained in relatively narrow ranges in quiet trading ahead of Monday's U.S. and U.K. holidays. The dollar index, which measures the U.S. unit against a basket of six major currencies, was at 71.925, down from 72.147 in late North American trading Thursday. See full story.