Daily Gold Update

Source: Marketwatch

San Francisco— Benchmark gold futures held on to gains Friday after Federal Reserve Chairman Ben Bernanke said the global economy was emerging from recession and U.S. home resales rose for a fourth straight month. The one-two punch of positive economic comments supported the precious metal, which had earlier advanced after an influential survey of European purchasing managers indicated the single-currency region was poised to return to economic growth in the third quarter.

Gold for December delivery added $14.3, or 1.5%, to $956 an ounce in electronic trading on the New York Mercantile Exchange. September copper gained 11 cents, or 4%, to $2.851 a pound. Gold has gained about 0.8% this week. Also helping metals advance, the dollar fell against the euro and some other major rivals, extending losses after the Bernanke speech and existing home sales data. The dollar index, which measures the U.S. unit against a basket of six major currencies, slid to 78.239 from 78.330 late Thursday. The index has lost 1.1% this week. Increasingly, gold has taken more direction from other commodities and the dollar, rising when the economic outlook improves, rather than playing a contrarian role. A weaker dollar tends to boost the price of dollar-denominated commodities as it makes them cheaper for holders of other currencies.