Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Tuesday for a fourth session, climbing to the highest level in two months, as the U.S. dollar remained at 10-month low and as a consultancy forecast that global central banks will sell the lowest amount of gold in 15 years this year. GFMS of London said Monday that signatories of the Central Bank Gold Agreement are expected to sell about 140 metric tons this year, the lowest level since 1994. The firm also said last week that second-quarter supply of scrap gold plummeted by more than 40% from the previous quarter to 350 metric tons.

On the Comex division of the New York Mercantile Exchange, August gold futures rose $10.90, or 1.1%, to end at $967.50 an ounce, the highest settlement price since early June. The contract rose to $969.50 earlier. The more active December contract was up 1.1% to $969.70. Also helping gold move higher, the U.S. dollar remained near the lowest level since late September, although the greenback climbed slightly in Tuesday trading. A weaker dollar tends to push gold prices higher as it increases the metal's investment appeal. See full story.