Daily Gold Update

Source:Marketwatch

San Francisco— Gold futures rallied to a close near $929 an ounce on Wednesday, with weakness in the U.S. dollar and soaring oil prices taking the metal's total price gain to more than 7% in five sessions. "Clearly the gold market is riding on the waves of momentum generated from the ailing U.S. dollar and from extremely strong oil markets, among other driving forces," said Peter Spina, an analyst at GoldSeek.com. "There remains very good potential for gold to revive the powerful bull market momentum from earlier this year, which could carry it significantly higher in the coming weeks."

Gold for June delivery gained $8.40 to close at $928.60 an ounce on the New York Mercantile Exchange. It climbed as high as $931 in the regular trading session. As of Wednesday, the contract has logged a gain of $62.10 since the May 14 close at $866.50. "Oil is obviously leading gold and if the historical gold vs. oil ratio ever returns, we could see gold as high as $1,500," said Peter Grandich, editor of the Grandich Letter. See full story.