Daily Gold Update

Source: Bloomberg

New York— Gold gained for the first time in five days as some investors judged yesterday's decline to a one- month low had gone too far given prospects that inflation will accelerate, boosting demand for the metal as a haven. The Federal Reserve as of March 19 lent $28.8 billion to the biggest U.S. securities firms to try to stabilize capital markets, in its first extension of credit to non-banks since the Great Depression. Pumping more money into the banking system may fuel inflation and demand for precious metals and other commodities.

“Fundamentally, the charge forward is still there,'' Peter McGuire, managing director at Commodity Warrants Australia, said today in a Bloomberg Television interview. “The time to buy is on the dips.'' Gold for immediate delivery gained $9.71, or 1.1 percent, to $920.24 an ounce as of 4:26 p.m. in Tokyo. Silver for immediate delivery gained 0.7 percent to $16.90 an ounce. See full story.