Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled higher Thursday, taking another stab at $1,900 an ounce, after the European Central Bank cut growth forecasts and U.S. jobless claims edged higher. A much-anticipated speech by U.S. Federal Reserve Chairman Ben Bernanke took some of gold�s shine, as he said inflation, one of the pillars of gold investing, was on its way down. Bernanke also refrained from hinting at any concrete steps toward economic stimulus. Gold for December delivery gained $39.90, or 2.2%, to settle at $1,857.50 an ounce on the Comex division of the New York Mercantile Exchange, snapping a two-day losing streak.

The contract traded as high as $1,868.70 an ounce. On Tuesday, the contract set an intraday high of $1,923.70 an ounce, although it ultimately settled in the red. Silver tracked gold higher, with the December contract up 90 cents, or 2.2%, to $42.53 an ounce. Markets are still operating with safe havens in mind, and gold is benefiting from being one of the few investments considered safer still available, said James Moore, an analyst for Thebulliondesk.com in London. The Swiss central bank earlier this week said it would make unlimited purchases in currency markets to cap the franc�s rise against the euro, reducing the Swiss franc�s appeal as a safe-haven currency. See full story.