Daily Gold Update

Source: Marketwatch

New York— Gold futures ended Wednesday's trading at a record high above $1,040 an ounce, as investment demand rose and as the U.S. dollar remained relatively weak. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by gold, rose for a third straight session to reach their highest level in three weeks. In foreign-exchange dealings, the dollar rebounded slightly against the euro and the Japanese yen, but the dollar index remained below the 77 mark. Gold for October delivery ended up $4.70, or 0.5%, at $1,043.30 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing level ever for a front-month contract. It surged to an intraday high of $1,048.20 an ounce earlier. The close broke Tuesday's record of $1,038.60. Gold for December delivery, the most actively traded contract, gained $4.70, or 0.5%, to $1,044.40, after hitting an intraday high of $1,049.70.

"The steady upward surge is led by funds whose clients request gold participation and continued momentum buying" as dollar stays weak, said George Gero, a precious-metals trader for RBC Capital Markets. Gold prices, as gauged by Comex front-month futures, have risen 18% this year. "Gold has significant upside potential into 2010," said Jordan Kotick, an analyst at Barclays Capital, in a note. Technical analysis indicated that "resistance currently is at $1,370; history suggests a run at $1,500." In the coming weeks, gold is likely to rise as high as $1,120 an ounce, he added. See full story.