Daily Gold Update

Source: Marketwatch.com

San Francisco— Gold futures climbed near $524 an ounce Thursday to trade at their highest level since 1981, chalking up a sixth consecutive session of gains on the heels of strong physical demand and concerns about inflation.

Gold for February delivery traded as high as $523.90 an ounce on the New York Mercantile Exchange. Futures prices haven't traded at a level that high since April 1981, according to monthly charts. The contract settled at $522.70, up $4.90.

Prices for the precious metal have been climbing since the start of the month, helping to drive a key index for the metals-mining sector to record highs.

"Momentum is definitely accelerating as February gold has now tacked on $60 in just a little over a month's time," said Dale Doelling, chief market technician at Trends In Commodities.

"All the markets need now is some extraordinary event to occur, like a stock market meltdown or a terrorist attack on U.S. soil, and we could see a quick $50-$100 pop in the price of gold," he said.

"The fact is, the technicals, fundamentals, and market sentiment are all aligned right now and that is what provides real 'legs' to markets," he said.

And "from a long-term perspective, I don't think it's too late to enter the game for those who are still on the sidelines," said Doelling.

Other metals were swept up in the rally, with silver for March delivery closing up 11.30 cents to $8.99 an ounce, its highest in 18 years.

January platinum rose $8.80 to $1,007 an ounce, while March palladium finished up $6.20 at $288.15 an ounce. March copper shed 0.15 cent to $2.03 a pound.

Inventories of copper, silver and gold were unchanged late Wednesday, according to Nymex. Copper supplies were at 3,681 short tons, silver was at 118.2 million troy ounces and gold was at 6.67 million troy ounces.