Daily Gold Update

Source: MarketWatch

San Francisco— Gold futures rose slightly Friday as a stimulus package announced by the White House to boost the slumping U.S. economy failed to soothe the markets, fueling safe-haven flows into the precious metal. "The proposed 'solution' is further cheap money, liquidity and 'stimulus' — this time in the form of showering tax rebate checks of some $150 billion on the citizenry," said Mark O'Byrne, executive director of Gold and Silver Investments Ltd, in a note. Gold futures for February delivery rose 30 cents to $880.80 an ounce on the New York Mercantile Exchange.

Still, the precious metal's advance was capped by gains in the dollar. A stronger U.S. currency tends to cheapen dollar-denominated commodities as it takes fewer dollars to buy the same amount of goods. The dollar index, which tracks the value of the greenback against a basket of other major currencies, rose for the second time in a row after four down days, last up 0.2% to 76.36. Gold surged to an all-time high of $916.1 an ounce on Tuesday, gaining more than $50 in just a week. See full story.