Daily Gold Update

Source: Marketwatch.com

San Francisco— Gold futures and mining stocks resumed their rally Friday, as safe-haven buying pushed the price of the precious metal to fresh highs for 2005.

A turn higher in the U.S. dollar served to blunt gold's advance, but only marginally. The greenback's gains stemmed from U.S. data that showed foreign capital inflows rising in July.

Gold for December delivery was up $3.30 at $462.60 an ounce on the New York Mercantile Exchange, having earlier risen to as high as $464, its highest level since December 7.

Analysts remain optimistic about gold's upside potential.

"Having broken last year's high at $457, the way is now clear for fresh highs," said James Moore, analyst at TheBullionDesk.com. He pegged the new major upside target for gold at $475 to $480 an ounce.

"The overall picture for gold hasn't been this good in years," said Peter Gramlich, editor of the Grandich Letter.

He repeated his forecast that gold's headed toward the $500-an-ounce mark, citing "strong physical buying, dwindling affects from central-bank sales and continuing deficits in mine supply."

Gold rallied 1.2% on Thursday. Among other bullish factors, Argentina's central bank said it might consider increasing gold reserves as an inflation hedge and as protection against a financial crisis, according to reports.

Also on Nymex, December silver gained 2.2 cents to $7.078 an ounce, while October platinum reached $925 an ounce, up $5.30, and December palladium rose $5.70 to $192.85 an ounce.

On the downside, copper weakened anew. The December contract fell 1.75 cents to $1.5870 a pound.

Tracking inventories, copper supplies were down 4 short tons at 9,663 short tons as of late Thursday, according to Nymex. Gold inventories stood at slightly more than 6 million troy ounces, up 3,022 troy ounces from the previous session, while silver was unchanged at 116.8 million troy ounces.