Daily Gold Update

Source: Marketwatch

New York— Gold futures finished slightly higher Monday, as weakness in the U.S. dollar underpinned demand for the precious metal. Gold for June delivery rose $1.70 to end at $928.70 an ounce on the New York Mercantile Exchange. The metal gave up most of its early gains, as the dollar pared some of its losses. Gold reached an intraday high of $934.50 on Monday.

"Gold is stronger as the dollar has weakened, despite leaders of the G7 [Group of Seven] and IMF [International Monetary Fund] governing council saying they would do all in their powers to provide market stability," said Mark O'Byrne, executive director at Gold and Silver Investments Ltd., in a research note. "Continuing worries about the health of the international financial sector has led to declines in stock markets internationally and renewed risk aversion," he said. The dollar pared losses but remained lower against most major counterparts Monday on fears about the state of the U.S. economy, as better-than-forecast retail sales data failed to stem worries about the greenback. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, edged down 0.2% to 71.76. See full story.