Daily Gold Update

Source: MarketWatch

New York— Gold futures rose slightly Wednesday as the metal's investment appeal increased with expectations that the meeting of the Group of 20 nations may not pull the world's economy out of recession. But rising U.S. stocks curbed gold's attractiveness and limited gains in prices. Trading stayed in a narrow range as investors remained cautious ahead of the G20 meeting on Thursday, when the dollar's status as the global reserve currency is expected to be discussed. The planned sale of 403 tons of gold by the International Monetary Fund is also expected to be discussed at the summit. Meanwhile, the European Central Bank said Wednesday it had completed the sale of 35.5 tons of gold. Gold for April delivery ended up $3.50, or 0.4%, at $926.10 an ounce on the Comex division of the New York Mercantile Exchange. The more active June contract also rose to $927.10. Wednesday's gain in gold came after it ended March trading down for the first month in five. The metal, however, rose 4.3% in the first quarter.

In a report released Wednesday, analysts at Morgan Stanley said they remained bullish in gold in both short term and long term, owing largely to continued uncertainty in the global financial system and long-term inflation risks. "The risk of sustained quantitative easing … will be long-term bullish for the gold market," they said in the report. See full story.