Daily Gold Update

Source: MarketWatch

New York— Gold futures rose above $900 an ounce Wednesday, after having closed below the psychologically important mark for the first time in a month, as a weakening U.S. dollar heightened the metal's investment appeal. But gold's gain could remain vulnerable, analysts said, as rising stock markets are likely to boost investors' risk appetite and reduce gold's appeal as a safe haven. Asian and European stocks moved higher, while stocks also rose on Wall Street following Tuesday's big rally. Gold for April delivery, the most active contract, ended up $14.80, or 1.7%, at $910.70 an ounce on the Comex division of the New York Mercantile Exchange. It fell as low as $892.60 earlier in the session. Gold closed Tuesday's trading below $900 for the first time since Feb. 9.

"Gold's short-term movements will mirror the dollar and the stock market," said Jeffrey Nichols, managing director at American Precious Metals Advisors. In foreign-exchange trading, the dollar fell against most of the other global currencies, with the dollar index down 0.8% to 88.008. A weaker greenback tends to raise dollar-denominated gold prices. See full story.