Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures ended a meandering session in the black Wednesday, as the dollar was weaker and a rally for grains futures brought inflation concerns back to the forefront. Traders also keyed in on comments from U.S. Federal Reserve Chairman Ben Bernanke, who has praised the dollar versus other currencies but also said the jobs picture is still worrying. Gold for April delivery added $1.40, or 0.1%, to settle at $1,365.50 an ounce on the Comex division of the New York Mercantile Exchange amid light volume. That was gold�s best settlement since Jan. 19. Gold traded in the red at times. Such downdrafts, however, were mitigated by a weaker dollar, said Adam Klopfenstein, a senior marketing strategist at Lind-Waldock in Chicago. With grains rallying on expectations of low supplies, �there are also some inflationary themes in the market,� he added.

Gold futures usually benefit from inflation concerns as the metal is seen as the ultimate store of wealth. Recent price weakness in the precious metal has been taken as �an attractive opportunity for physical gold buying,� analysts at Commerzbank said in a note to clients. �Additional support … could come from China�s return to the market after the Lunar New Year Festival. High demand both from private and institutional investors is likely to remain a major support factor for gold prices in the medium to long term,� they added. See full story.