Daily Gold Update

Source: Marketwatch

New York— Gold futures rallied to fresh 28-year highs on Thursday, extending their gains after rallying more than $20 in the previous session. Gold for February delivery surged $10 at $870 an ounce on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $872. The record high for Nymex gold futures was $875, set on Jan. 21, 1980. On Wednesday, gold futures surged $22 to close at $860.

"The metal could not wish for a stronger motivation than the powerful brew of nearly $100 per barrel crude oil and the potential for further troubles in Pakistan," said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note. Rising tensions in Pakistan following the assassination of former Prime Minister Benazir Bhutto last week have drawn some safe-haven buying of gold over the past few days. See full story.