Daily Gold Update

Source: MarketWatch

New York— Gold futures rallied to a 27-year high on Friday, as the dollar's tumble against other major currencies boosted demand for the precious metal. Gold for December delivery surged $10.10, or 1.5%, to end at $750 an ounce on the New York Mercantile Exchange. The contract earlier hit an intraday high of $752.50, a new 27-year high. The record intraday all-time high for a benchmark gold futures contract on Nymex stands at $875 from Jan. 21, 1980. Gold posted a weekly gain of $11.10 from last Friday's closing level of $738.90.

"Gold is returning to its historical attribute as a monetary instrument," said Peter Spina, an analyst at GoldSeek.com. "With the U.S. dollar falling to new lows, capital is looking for a preservation of wealth asset. As foreign currencies become more expensive and suspect themselves, gold is quickly becoming an asset choice…. A lack of faith in the U.S. dollar's ability to preserve purchasing power will continue to flood the gold market with investment demand," Spina said in emailed comments. See full story.