Daily Gold Update

Source: Marketwatch

New York— Gold futures rose above $1,000 an ounce Wednesday, as the dollar declined after the release of upbeat economic data in the U.S., burnishing the appeal of the precious metal. The U.S. economy shrank in the second quarter at a smaller pace than earlier forecast, the Commerce Department reported Wednesday. Meanwhile, private-sector employers in September shed the fewest jobs since July 2008. Also pushing up gold prices, crude rallied more than 4%, increasing gold's appeal as a hedge against potential inflation. Gold for December delivery, the most actively traded contract, gained $14.90, or 1.5%, to $1,009.30 an ounce on the Comex division of the New York Mercantile Exchange. The contract earlier hit an intraday high at $1,010.80. October gold, the front-month contract, closed up $14.90, or 1.5%, at $1,008 an ounce, after rising as high as $1,008.70.

"Gold buyers continue to add to positions as the same familiar fundamentals of higher crude, lower dollar and geopolitical news," said George Gero, a precious-metals trader for RBC Capital Markets. Gold prices, as gauged by front-month contracts, ended the month up 5.9% and the quarter up 8.7%. "The overall trend of improving economic indicators and inflation concerns look set to push gold higher again and ultimately challenge last year's all-time high," said James Moore, analyst at TheBullionDesk.com, in a note to clients. See full story.