Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures climbed Tuesday to mark their highest close in nearly seven weeks, buoyed by weakness in the U.S. dollar, but prices failed to finish above the key $1,800-an-ounce level as news from the euro zone continued to tug at trader sentiment. Gold for December delivery rose $8.10, or 0.5%, at settle up to $1,799.20 an ounce on the Comex division of the New York Mercantile Exchange. It traded as high as $1,804.40 earlier. �The daily battle is headlines from Europe� and �short-term profit-taking, which keeps gold�s progression higher in check,� said Jeff Wright, managing director at Global Hunter Securities. �The solutions to Greece/Italy are all inflationary in nature; inflation is supportive of gold as it erodes the value of currencies.�

�While Italy does not have direct impact on gold,� Wright, added, �Italy�s instability continues to fuel the feeling the crisis is not contained, and will spread further in southern Europe.� Also, recent news that Germany will not sell any of its gold reserves to raise capital in a bailout scenario is a �good sign for gold to continue upward trend in coming weeks,� he commented. Wright expects gold to be trading in the $1,800 to $1,900 range in early 2012 and possibility reaching $2,000 by the second quarter. See full story.