Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled higher Monday, snapping a two-day losing streak as talk of inflation and a lower dollar propped up prices against weakness in other metals. Gold for February delivery added $3.50, or 0.3%, to $1,344.50 an ounce on the Comex division of the New York Mercantile Exchange. Futures had climbed as high as $1,352.40 an ounce earlier in the day, but lost steam as the session progressed.

Monday�s advance follows a spell of weakness for gold, with the metal for February delivery settling down $5.50 an ounce at $1,341 in North American trading Friday. That was its lowest settlement level since Nov. 17, one that brought the previous week�s losses to 1.4%. The modest advance on Monday was due to a stronger euro pressuring the dollar and some gold buying at the expense of silver futures. Also, there were worries about global inflation after the head of the European Central Bank voiced his concerns about higher energy and food prices, said Jim Steel, a metals analyst with HSBC in New York. Gains were clipped, however, by weakness in silver, platinum and palladium, he added. See full story.