Daily Gold Update

Source: CBS.Marketwatch

San Francisco— Gold futures climbed above $426 an ounce Monday for the first time in almost two weeks, with most analysts expecting last week's revaluation of the Chinese yuan to boost demand for metals and other commodities.

Copper prices also strengthened, prompting a rise in the September contract to another contract high.

Gold for August delivery traded as high as $426.40 an ounce on the New York Mercantile Exchange before closing up 90 cents for the session at $425.90 — its highest since July 12.

"We may see some upside potential here to $435 in the coming weeks but I'd have to say it [would] be a great time to go short, barring unforeseen factors," said Thomas Hartmann, an analyst at Altavest Worldwide Trading.

"A close above $426 could help bring some more gains near term, if the dollar cooperates," he said.

But gold found little support from the U.S. currency, which continued to rebound against the yen as traders further contemplated what could be limited implications from China's currency revaluation efforts. Strength in the greenback often dampens investment demand for gold.

"Terrorist activities [in London] and China's currency revaluation all combined to give the precious complex a healthy boost over the past week with all the metals posting positive gains," said James Moore, an analyst at TheBullionDesk.com in London. August gold gained nearly $4 an ounce last week.

"The week ahead sees a mix of U.S. economic data including July consumer confidence on Tuesday, June's durable goods on Wednesday and second-quarter GDP on Friday — all of which are likely to keep the market in a mixed mood," said Moore, in a note clients.

In other metals trading, silver for September delivery rose 2.5 cents to close at $7.14 an ounce. September palladium shed 75 cents to end at $194.80 an ounce, while October platinum closed at $889.20 an ounce, down $1.40.

Copper prices continued to touch new contract highs amid concerns over global supplies. September copper traded as high as $1.6195 a pound. It closed at $1.618, up 1.45 cents.

"Further falls in copper stocks and a pick-up in buying out of China have driven prices higher," according to William Adams, an analyst at BaseMetals.com.

Tracking inventories, copper supplies were down 405 short tons at 12,507 short tons as of late Friday, according to Nymex. Silver stocks were unchanged at 107.1 million troy ounces, while gold inventories stood at 5.77 million troy ounces, up 32,065 from the previous session.