Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Wednesday for a third consecutive session, climbing to their highest levels in two weeks, as a weakening dollar and surging oil prices increased gold's appeal as a hedge against a weaker currency. The U.S. dollar lost ground against most of its major rivals after data showed U.S. consumer prices rose in June at their fastest pace in nearly a year. Crude oil rose for the first session in four, climbing above $61 a barrel. Comex August Gold futures have risen back to the halfway point of the April to June advance at $930 a troy ounce but should be capped by it and the $950 resistance area and fall back towards $910 in the weeks to come. August gold futures rose $16.60, or 1.8%, to end at $939.40 an ounce on the Comex division of the New York Mercantile Exchange, the highest settlement since July 1.

"Market maintained highs for the day due to the weak dollar, crude strength and rebounding economy reflecting some inflationary possibilities," said George Gero, a precious-metals trader for RBC Capital Markets. Inflation worries tend to push up gold prices, as some investors buy the metal as a hedge against rising prices. See full story.