Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Wednesday for the first session in three, climbing above $900 an ounce as the U.S. dollar fell after a worse-than-expected U.S. economic report, raising gold's investment appeal. Meanwhile, copper futures rallied nearly 5% to above $2 a pound, pacing strong gains in crude oil and U.S. stocks as inventories at London Metal Exchange showed another decline. Gold for June delivery gained $6.90, or 0.8%, to end at $900.05 an ounce on the Comex division of the New York Mercantile Exchange. May copper gained 9.4 cents, or 4.9%, to $2.01 a pound.

After floor trading closed, gold reduced part of today's gains in electronic trading after the Federal Reserve said that the economic outlook had improved over the last six weeks, although the economy was likely to remain weak for a time. The Fed also kept its key interest rate unchanged at 0 to 0.25%. Gold for June delivery fell $4.70, or 0.5%, to $895.80 an ounce in recent trading. Gains in commodities and stocks came after economic data showed the U.S. economy contracted at a bigger-than-expected rate, pushing the U.S. dollar sharply lower. "The weaker-than-expected GDP report could be the catalyst which moves the dollar lower and gold higher," said Brian Kelly, chief executive officer of Kanundrum Research, a commodities and macroeconomic research firm. See full story.