Daily Gold Update

Source: Marketwatch

New York— Gold futures rose in early dealings Thursday, as the dollar continued to drop, even after upbeat U.S. economic data, while crude oil rallied close to record highs. Gold for December delivery was recently up $11.1 or 1.5%, at $757.20. The dollar index, which tracks the dollar against a basket of major currencies, was down 0.5%. The price of gold, which is dollar-denominated, rises when the dollar falls. The dollar found some support after news of a drop in jobless claims and rising import prices, which curbed expectations that the Federal Reserve will cut interest rates later this month.

"The dollar's continuing weakness, continuing high commodity prices and near record oil prices above $80 per barrel are inflationary and conducive to higher gold prices," said Mark O'Byrne, director of Gold and Silver Investments, in a note. See full story.