Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures climbed Monday to close above $1,670 an ounce for the first time in more than two weeks, with investors showing strong appetite for commodities and stocks as the U.S. dollar fell. Gold for December delivery closed up $35, or 2.1%, at $1,670.80 an ounce on the Comex division of the New York Mercantile Exchange. That was the highest settlement since Sept. 22 � and prices extended their gains into electronic trading immediately after the close of the regular session, tacking on another $3.70 at last check. Prices climbed as much $40.90 earlier to touch an intraday high of $1,676.70 on Comex. Other metals finished sharply higher to start the week as well, paced by a big advance for palladium.

�Gold is remaining bid-up on not just [a weaker] dollar, but particularly buoyant physical demand amongst retail investors,� said Ross Norman, chief executive at London-based bullion brokers Sharps Pixley. �Demand in China has been especially strong with the bars selling at more than a $3 premium over London prices,� he noted. The gains for gold came as the dollar dropped against major rivals. Gold and the dollar tend to move in opposite directions, as a decline in the dollar makes gold cheaper and therefore more attractive for holders of other currencies. See full story.