Daily Gold Update

Source: Marketwatch

New York— Gold futures traded higher Wednesday, rebounding from their seven-week low as disappointing consumer confidence and new home sales data weighed on the dollar and boosted gold's appeal as a hedge against a weaker currency. Sales of new homes fell 11.3% in November to a seasonally adjusted annual rate of 355,000, the Commerce Department estimated. The consumer sentiment index came in at 72.5 in late December, according to Reuters/University of Michigan. Analysts had expected the index to climb to 74.

On the Comex division of the New York Mercantile Exchange, gold for December delivery rose $7.30, or 0.7%, to $1,093.30 an ounce. The contract ended Tuesday's trading at the lowest level in seven weeks. February gold, the most actively traded contract, rose 0.7% to $1,094 an ounce. Gold has come under pressure since early December, with the U.S. currency rising steadily on expectations that the Federal Reserve will next year pull back its measures to support the economy. See full story.