Daily Gold Update

Source:Marketwatch

San Francisco— Gold futures accelerated their gains Tuesday, boosted by oil's surge to a record high above $122 a barrel and a decline in the U.S. dollar. Gold for June delivery gained $8.70 to $882.80 an ounce on the New York Mercantile Exchange. The contract is poised to add to the more than $23 gain it's seen over the past two trading sessions. Crude-oil futures gained for a third day, rising to a new record of above $122 a barrel, as weakness in the U.S. dollar and global supply concerns continued to boost oil prices. See Futures Movers.

On the currency markets Tuesday, the U.S. dollar traded lower against most of its major rivals. The dollar index fell 0.4% to 72.88. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. "Seasonally strong physical demand should continue to provide a good base for gold in the coming sessions, and with oil prices setting fresh records, investors may look to increase their gold holdings as a hedge against inflation," said James Moore, an analyst at TheBullionDesk.com, in a research note. See full story.