Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled at a record Thursday as the dollar fell further on a jump in weekly jobless claims and data showing the U.S. economy grew at a slower pace in the first quarter. The dollar had already been hit after Federal Reserve Chairman Ben Bernanke said Wednesday he would hold the central bank�s stimulative stance indefinitely. Thursday�s macroeconomic reports reinforced the view that loose monetary policy is still needed to prop up the economy. A weaker dollar lifts gold�s value as a safe-haven alternative to currencies. It also sent gold to an intraday record, and silver futures rallying.

Gold for June delivery rose $14.10 or 0.9%, to $1,531.20 an ounce on the Comex division of the New York Mercantile Exchange. The contract traded as high as $1,538.80 an ounce, according to a preliminary tally on CME Group�s website. CME owns Comex. �Bernanke basically said, �hey, we are going to let the U.S. dollar just get crushed,�� said Michael K. Smith, with T & K Futures and Options Inc. in Florida. Silver was likely to hit a top but Wednesday�s Fed action gave it extra room for more rallying, he added. See full story.