Daily Gold Update

Source: Marketwatch.com

San Francisco— Gold futures climbed past $470 Monday afternoon, rebounding from an earlier decline to help indexes for the sector extend their gains from the previous session.

"Gold has been pretty volatile lately — which makes sense given the uncertain inflation picture out there lately," said Michael Cuggino, chief executive at Pacific Heights Management LLC.

In the latest dealings, gold for December delivery was up $1.40 at $470.40 an ounce on the New York Mercantile Exchange. Prices, which climbed $5.90 Friday, but still ended the week with a 0.6% loss, traded as low as $465.60 earlier.

"Strong physical support and gold's ability to hold the $460 level are likely to prove supportive factors in the week ahead," said James Moore, an analyst at TheBullionDesk.com in London.

Nevertheless, "gold is still at risk of a sharp correction lower should the funds liquidate in earnest," he said.

At the same time, "oil and the course of Hurricane Wilma will be closely monitored and are likely to prove pivotal for the gold market…with the possibility of further damage to the oil-refining facilities along the Gulf of Mexico likely to add further inflationary support," he said.

Oil futures, however, fell over 1% Monday with Wilma steering clear of the bulk of energy production facilities in the region.

Elsewhere on Nymex, December silver managed modest gains, up 5.5 cents at $7.75 an ounce.

December copper fell 1.8 cents, or 1%, to $1.775 a pound. December palladium was at $213.50 an ounce, up $1.45. Sister metal October platinum fell 30 cents to $932.50 an ounce.

Tracking inventories, copper supplies were unchanged at 3,690 short tons as of late Friday, according to Nymex. Silver stocks were down 682,667 troy ounces at 116.7 million troy ounces, while gold inventories stood at 6.35 million troy ounces, down 585 troy ounces from the previous session.

Indexes tracking equities in the metals-mining sector climbed after ending last week around 3% lower.