Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed at a record Tuesday after bouncing off $1,500 an ounce, getting a lift from a weaker dollar and longer-running worries about debt-strapped developed markets. Copper and other metals, which started the day on firmer ground, held their gains after getting a boost from housing-starts data. Gold for June delivery ended up $2.20 an ounce, or 0.2%, at $1,495.10 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, gold rallied as high as $1,500.50 an ounce, according to the CME Group website, an intraday record for the metal. Prices had dipped in and out of the red before floor trading began and continued to waver early in the session.

But investors, particularly long-term buyers, have shown a tendency to take advantage of short-term pullbacks, noted Bill O�Neill, managing partner at Logic Advisors. �On every dip, trade is consistently buying on weakness,� said O�Neill. The session�s rise to a record came against a backdrop that�s proved nearly irresistible to gold buyers � threats against Europe�s shared currency as Portugal, Greece and Ireland seek financial aid; rising global inflation; and on Monday, Standard & Poor�s decision to cut its outlook on the U.S. sovereign rating. See full story.