Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Tuesday for the first session in three, climbing above $920 an ounce as the slide in the U.S. dollar increased gold's appeal as an investment alternative. Gold for April delivery rose $5.30, or 0.6%, to $920.80 an ounce on the Comex division of the New York Mercantile Exchange. The more actively trading June contract gained $5.60, or 0.6%, to $923.30 an ounce. In currencies trading, the dollar was modestly lower versus most major currencies other than the Japanese yen, pressed by light position-squaring and a bounce in equity markets. A weaker greenback tends to push up dollar-denominated gold prices, though this pattern hasn't always held true in gold's recent trading.

"Gold is supported by weakness in the dollar today and expected dollar weakness in the coming months as the Federal Reserve's balance sheet deteriorates further and U.S. budget deficits and the national debt rise very significantly," said Mark O'Byrne, executive director at Gold and Silver Investments. Gold is set to end March's trading down for the first month in five, but is poised to gain about 4% in the first quarter. The gold price is now more than $80 lower than this year's high above $1,000 hit on Feb. 20. While historically dollar-denominated gold prices tend to move in the opposite direction of the dollar, the pattern hasn't always held true in the first quarter, as investors seeking safety pushed up both the dollar and gold prices. The dollar gained more than 5% against the euro in the first quarter. See full story.