Daily Gold Update

Source: Marketwatch

New York— Gold futures gained 1% Thursday, as weakness in the U.S. dollar and rising oil prices boosted demand for the precious metal. Gold for August delivery rose $12.30 to $975 an ounce on the New York Mercantile Exchange. The metal reversed earlier losses after hitting an intraday low of $953.50 an ounce.

"The dollar will remain at the center of attention today — rumors of sovereign wealth funds reducing their greenback holdings is keeping the currency's would-be buyers sidelined, as are ongoing financial system difficulties," said Jon Nadler, senior analyst at Kitco Bullion Dealers. The dollar gained on the yen Thursday, but slipped against most other rivals, as ongoing jitters about the global financial sector continued to cast a cloud over the U.S. unit. The dollar index, which measures the buck against a trade-weighted basket of currencies, fell 0.3% to 71.87. See full story.