Daily Gold Update

Source: MarketWatch

New York— Gold futures rallied to a new all-time high Thursday, after the dollar fell sharply as investors interpreted Federal Reserve Chairman Ben Bernanke's prepared remarks as a sign that the central bank will further cut interest rates. Gold for February delivery soared as high as $897.30 an ounce on the New York Mercantile Exchange, a new record high that surpassed the previous record of $894.40 set on Wednesday. February gold finished up $11.90 at $893.60 an ounce on Nymex.

"Despite being very overbought, gold continues to defy the shorts thanks today to Bernanke's comments," said Peter Grandich, editor of The Grandich Letter, in emailed comments. "$900 is not a question of if but when." Federal Reserve Chairman Ben Bernanke said Thursday that more interest rate cuts are on the way, as the U.S. central bank wrestles with a deteriorating economy brought on by a struggling housing market, high energy prices and a weaker stock market. See full story.