Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Friday for a sixth straight session to a new record high, ending the week with their third weekly gain as continued worries over a weaker dollar and global inflation encouraged investors to buy gold as a safe asset. Gold for December delivery, the most actively traded contract, rose $4.90, or 0.4%, to $1,146.80 an ounce on the Comex division of the New York Mercantile Exchange. The thinly traded November contract also rose 0.4% to $1,146.40, the highest level for a Comex front-month contract.

Gold futures have made significant gains in the second half of this year as investors are worried that as the economy starts recovering, inflation levels will also rise. Benchmark gold futures contracts have soared 26% since their July low. Gold rose in 16 out of the 19 weeks since the week started July 17. "Inflation worries and recession worries bring gold buyers as low interest rates make it a good alternative to short term fixed income," said George Gero, a precious-metals trader for RBC Capital Markets. "Longer term holders are evident" as investors are buying more contracts for delivery in future months. See full story.