Daily Gold Update

Source: Marketwatch

Los Angeles— Gold futures gained on Thursday, supported by European concerns about inflationary pressures. Gold for August delivery settled $4, or 0.3%, higher at $1,542.70 an ounce on the Comex division of the New York Mercantile Exchange, breaking a two-day losing streak. The European Central Bank kept interest rates unchanged at 1.25% on Thursday, as widely expected. But Jean-Claude Trichet, the bank�s president, said �strong vigilance� is needed against inflation.

The term is widely interpreted as signaling an interest-rate increase at the ECB�s next meeting in July. Read more about the ECB in Currencies. Inflation fears are one of the pillars of gold investing, as the metal is seen as the ultimate store of wealth. Gold futures on Thursday also tracked an advance in the oil market, said Frank Lesh, a futures analyst and broker at FuturePath Trading in Chicago, in a telephone interview. �As crude moves higher, it increases our fear of inflation or inflationary expectations.� See full story.