Daily Gold Update

Source: Marketwatch

San Francisco— Gold prices closed modestly higher Monday in a session colored by bullion's technical factors, as investors sold the U.S. dollar on enthusiasm for recent China trade data and an extended timeline for new capital rules. Gold for December delivery ended up 60 cents, or 0.1%, at $1,247.10 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, gold had fallen as low as $1,242.30 an ounce. The SPDR Gold Trust slipped 4 cents to $121.69. Silver closed up 31 cents, or 1.5%, to $20.15 an ounce, the highest close for a most-active contract since March 14, 2008, according to FactSet Research.

Gold's modest advance in choppy trade came as investors bid up stocks and industrial commodities, including oil and copper, on refreshed optimism over the pace of the global economic recovery. During the weekend, China reported that industrial production rose nearly 14% in August from the prior year. Plus, global bank regulators, through the Basel Committee on Banking Supervision, announced new capital rules that weren't as stringent as some feared. The rules will be implemented over several years. See full story.