Daily Gold Update

Source: MarketWatch

New York— Gold futures rallied above $835 an ounce Thursday, gaining from sharp weakness in the U.S. dollar and surging oil prices. Gold for February delivery gained $14.20, or 1.7%, to $822.90 an ounce in electronic trading on Globex. Earlier, the contract soared to an intraday high of $835.30 an ounce.

"A weaker dollar and firmer crude prices is helping sentiment, as is news that an interim loan for the car companies was passed last night by a slim margin in the House," said Edward Meir, an analyst at MF Global, in a note. Oil futures extended their rally on rising expectations that the Organization of Petroleum Exporting Countries will cut production at its meeting next week. Gold tends to benefit from rising oil prices, because they enhance the metal's appeal as a hedge against inflation. See full story.