Daily Gold Update

Source: Marketwatch

New York— Gold and platinum futures posted strong gains Thursday, as the possibility of further supply shortages in South Africa boosted metals demand. Gold for April delivery gained $5 to end at $910 an ounce on the New York Mercantile Exchange. Platinum for April delivery soared $32.40 at $1,851.40 an ounce. Earlier, the contract hit an intraday high of $1,852 an ounce. Severe power shortages in South Africa, the world's second-largest gold producer and the biggest platinum producer, are posing serious threats to mine production.

Gold trading has been volatile this week. On Wednesday, gold futures surged $14.70, or 1.6%, to end at $905, recovering from their decline of over $19 on Tuesday, when they ended at $890.30 an ounce. "Another set of weak economic data" boosted gold prices on Thursday, said Zachary Oxman, a senior trader at Wisdom Financial. "As we continue to get these reports that prove to investors that we are in fact in a recession, you should continue to see gold climb and the dollar fall," Oxman said. "I think this will be one of the major definable trends of 2008." See full story.