Daily Gold Update

Source: Marketwatch

New York— Gold futures erased losses Friday, ending back above $1,000 an ounce as the U.S. dollar weakened against the euro, boosting the metal's appeal as an alternative investment. The dollar had been higher earlier in the session, pressuring gold, on the heels of a disappointing U.S. jobs report. But the euro-zone single currency clawed back against the greenback in later trading. Sensitive to moves in the U.S. currency, gold for December delivery rose $3.60, or 0.4%, to $1,004.30 an ounce on the Comex division of the New York Mercantile Exchange. The October contract was also higher, up $3.70, or 0.4%, at $1,003.20. Both gold contracts ended the week up 1.3%.

"The reversal in the dollar and gold indicates the markets believe the Fed and Treasury will keep a weak-dollar policy to stimulate the economy," said Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm. "This opens the door to the potential for competitive currency devaluations," he said, adding that in such a scenario, "the natural beneficiary is gold." See full story.