Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled at a three-week high Tuesday, extending gains after China�s central bank raised interest rates to cool inflation pressures and the dollar weakened. Gold for April delivery rose $15.90, or 1.2%, to $1,364.10 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s highest settlement since Jan. 19. �Gold is moving higher after China validated inflation,� said George Gero, a vice president at RBC Wealth Management. Gold held momentum through the trading day, said Frank Lesh, a broker and futures analyst with FuturePath Trading in Chicago.

There�s still some apprehension about Egypt, and a weaker dollar supported prices, he added. Copper fell off highs and ended the day lower. Silver settled at its best in five weeks, while platinum and palladium settled at fresh multiyear highs. Gold�s trading has been choppy in recent days, but for precious metals have soared in recent months as a growing number of investors seek an alternative asset as a bulwark against inflation and the declining value of several currencies, including the dollar. See full story.