Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed at their highest level in more than three weeks Thursday as concerns over global economies and a decline in South African gold production lifted prices for the precious metal past $900 an ounce. "In the medium to long term, the combination of strong international safe-haven demand and decreasing production and supply of gold in most major producers, and particularly in South Africa, will likely result in gold going significantly higher in the coming months," said Mark O'Byrne, a director at Gold and Silver Investments Ltd.

Gold for August delivery touched a high of $910.50 an ounce on the New York Mercantile Exchange before closing with a gain of $10.70, or 1.2%, at $904.20 an ounce. That was the contract's strongest closing level since May 28. Strong fundamentals for gold include "a deteriorating global economy and concerns regarding global stagflation — and this was added to by the very poor South African gold production figures this morning," said O'Byrne. See full story.