Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed more than $15 an ounce higher Monday, as weak U.S. economic data and declines in the dollar encouraged investors to return to the precious metal as a safe haven. But rising risk appetite lured some bargain-hunting investors out of their defensive shells and into the equities market, keeping a cap on the metal�s gains. Prices fell by more than $40 an ounce in the past two trading sessions as U.S. stocks rebounded � and the Dow Jones Industrial Average on Monday was set to extend a two-session winning streak. Gold for December delivery tacked on $15.40, or 0.9%, to settle at $1,758.00 an ounce on the Comex division of the New York Mercantile Exchange. It touched a high above $1,760, recovering from a low of $1,730.80 in electronic trading.

Gold�s current strength indicates long-term economic concern, globally and domestically, said Darin Newsom, senior analyst at Telvent DTN. In the year to date, gold prices are up more than 20% as concerns about the strength of the global economic recovery have boosted the safe-haven investment appeal of the metal. Economic news on Monday fed into those concerns. See full story.