Daily Gold Update

Source:Marketwatch

San Francisco— Gold futures climbed almost $6 an ounce Monday as concerns about inflation and overall strength in oil prices helped boost investment demand for the precious metal. "There is a definite air of the 1970s in recent economic data and the reality of falling economic growth and rising inflation or stagflation," said March O'Byrne, director at Gold and Silver Investments Ltd.

Gold for June delivery closed $5.90 higher at $905.80 an ounce on the New York Mercantile Exchange. It hasn't closed at a level this high since April 23. On Friday, gold closed with a gain of $19.90, or 2.3%, at $899.90 an ounce. It was up 1.6% for the week. "With the dollar having strengthened against the euro, the prime reason for gold's early strength looks to have been inflation hedging buying due to oil going above $127 prior to a small sell off," said O'Byrne, in emailed comments. See full story.