Daily Gold Update

Source: Marketwatch

New York— Gold futures surged to record highs above $1,090 an ounce Wednesday, as the dollar sold off and buyers piled in hoping to catch the precious metal's recent rise. Gold for November delivery rose to $1,094 an ounce on the Comex division of the New York Mercantile Exchange, the highest level for a Comex front-month contract. The thinly traded contract ended up 0.2% at $1,086.70 an ounce. Gold for December delivery, the most actively traded contract, also ended up 0.2% on the session, at $1,087.30 an ounce, after setting an intraday high of $1,096.20 an ounce.

Central banks in China, Russia and other major emerging markets have indicated "interest in building their holdings of gold as part of their diversification away from the U.S. dollar," said Nicholas Brooks, head of Research and Investment Strategy at ETF Securities. "This appears to be a structural change that may support the gold price on a medium- to longer-term basis," he said. The dollar weakened in Wednesday's foreign-exchange trading. Gold prices tend to rise when the dollar falls. See full story.