Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures finished higher Tuesday, with a weaker U.S. dollar fueling a more than $20-an-ounce gain in prices for the precious metal, as a jump in U.S. housing starts helped the stock market rally. Gold for delivery in February climbed by $20.90, or 1.3%, to settle at $1,617.60 an ounce on the Comex division of the New York Mercantile Exchange, after touching a high of $1,620.80 during the session. Gold logged its biggest single-session dollar gain month to date. Prices had slipped $1.20 on Monday, extending last week�s drop of 6.9%.

Gold is higher �due to dollar weakness and it is likely that some traders have viewed the recent selloff as excessive and are tentatively re-entering the gold market,� said Mark O�Byrne, executive director at GoldCore. �Bullion demand remains robust in Europe and appears to be picking up in Asia again and this will likely support prices at these levels.� Adding to support for the metal, gains in oil Tuesday may also lead to �gold buying for inflation hedging purposes,� he said in emailed comments. See full story.