Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Wednesday for a fourth straight session, climbing above $1,130 an ounce on concerns that the economic recovery could bring higher inflation, increasing gold's investment appeal. The four-day winning streak, the longest in one month, came after the metal declined more than 7% in December, the biggest monthly loss in 14 months. Also helping gold Wednesday, the dollar turned lower against most of its rivals. Gold for February delivery gained $17.80, or 1.6%, to $1,136.50 an ounce on the Comex division of the New York Mercantile Exchange, after rising to $1,138.40 an ounce earlier in the session.

"The global economy is improving at a faster pace than expected, and the net result is increased demand for products, which is causing a [price] rise in commodities," said Brian Kelly, chief executive of Kanundrum Research, a commodities and macroeconomic research firm. "Investors are interpreting these price increases as inflationary and are buying gold as a hedge." See full story.