Daily Gold Update

Source: Marketwatch

New York— Gold futures surged nearly 1% Wednesday, reversing early losses, as the metal's appeal as an inflation hedge and a safe haven continued to draw investment demand. Gold for April delivery gained $8.30 to $937.80 an ounce on the New York Mercantile Exchange. "Gold is now extremely well-placed to set a fresh record high as investors continue to seek the metal's anti-inflationary and safe-haven attributes," said James Moore, an analyst at TheBullionDesk.com, in a note.

Gold futures rose, even as the dollar strengthened against other major currencies. The dollar gained after both core and headline inflation figures were higher than expected in January, raising concerns the U.S. Federal Reserve might have to stay its easing hand and put inflation fears on the front burner again. The Labor Department reported that inflation for January was stoked by large increases in energy and food prices but also showed increases in a host of underlying core prices. U.S. consumer prices rose a seasonally adjusted 0.4% last month. See full story.