Daily Gold Update

Source: MarketWatch

New York— Gold futures fell Thursday as investors digested fresh developments in Washington surrounding the government's proposed plan to help resuscitate the U.S. financial sector. Key leaders of the House and Senate committees that oversee Wall Street announced Thursday that a "fundamental" bipartisan agreement has been reached on principles for a $700 billion rescue plan to patch the shattered financial sector.

If the plan is enacted, gold prices could rebound, analysts said. The plan "will continue to undermine the value of the U.S. dollar and further support a flow of capital out of paper into hard assets, into gold and silver," said Peter Spina, president, Gold Seek LLC. The dollar turned lower Thursday, limiting commodities' losses. A weaker greenback tends to push up dollar-denominated commodities prices. "Given the weaker U.S. economic and dollar outlook, increased safe-haven demand and improved technical picture, gold is in a strong position to push higher," said James Moore, an analyst at TheBullionDesk.com. See full story.