Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Wednesday for the first session in three, rallying as much as 4% before paring gains and closing slightly higher, as the U.S. dollar's weakness increased the metal's appeal as an alternative investment. Gold for December delivery rose $32.10, or 4.4%, to an intraday high of $764.80 an ounce. It pared gains in afternoon trading as the dollar reduced losses and U.S. equity markets extended declines. The contract closed up $3.30, or 0.5%, at $736 an ounce on the Comex division of the New York Mercantile Exchange.

"Gold again looked to the dollar and equity markets for direction," said James Moore, a precious metals analyst at TheBullionDesk.com. "For now gold is likely to remain in the current $720 to $765 range." In currencies trading, the dollar index , which tracks the value of the greenback against major rivals, was last seen almost flat. It was down more than 1% earlier. The dollar's weakness came after the Labor Department reported U.S. consumer prices declined a record 1% in October from a year ago, seasonally adjusted, as energy prices fell 8.6%, also a record. See full story.