Daily Gold Update

Source: MarketWatch

New York— Gold futures rallied above $800 an ounce Wednesday, as rising oil prices and weakness in the U.S. dollar propelled demand for the precious metal. Gold for February delivery surged $34.60 to end at $808.80 an ounce on the New York Mercantile Exchange. This was gold's highest closing level since Nov. 28. Earlier Wednesday, the contract hit an intraday high of $813.80 an ounce.

"The bounce in oil prices is likely lending support, as is continuing robust physical demand internationally," said Mark O'Byrne, executive director of Gold & Silver Investments Ltd. Gold gained $4.90 Tuesday to end at $774.20 an ounce on the New York Mercantile Exchange. Oil futures rallied Wednesday, but ended below their intraday highs, as the market weighed a build in U.S. crude and gasoline supplies against speculation that Saudi Arabia may implement a big production cut in January. Rising oil prices tend to increase demand for gold as a hedge against inflation. See full story.