Daily Gold Update

Source: Marketwatch

New York— Gold futures Tuesday erased earlier losses, closing higher for the first time in three sessions as rising oil prices increased demand for gold as an investment haven against inflation. Gold for December delivery rose $2.4, or 0.3%, to $828.10 an ounce on the New York Mercantile Exchange. It earlier fell to as low as $812.

October crude futures soared as much as 2% on concerns that Hurricane Gustav may damage oil facilities in the Gulf of Mexico. Crude was trading lower earlier. Gold prices had started the session lower amid a rallying dollar. Gains in the greenback, however, shrank after data showed that the U.S. economy was still threatened by a slowdown in the housing sector. See full story.