Daily Gold Update

Source: Marketwatch

New York— Gold futures on Thursday settled at their highest price this week as investors were once again attracted to bullion's safe-haven appeal as data pointed to a wobbly U.S. economy. Caution ahead of the Group of 20 nations meetings over the weekend and the uncertainties surrounding the U.S. Congress' efforts to enact a financial-overhaul bill also contributed to gold's rise, as did a weaker dollar. Gold for August delivery rose $11.10 to $1,245.90 an ounce on the Comex division of the New York Mercantile Exchange, according to CME. That was the highest finish for gold since Friday's $1,258.30 record high. The contract posted an intraday high of $1,249.50 an ounce earlier in the day. Copper was the star of the day, however, adding 2.4%. Silver's run mirrored gold and the metal settled higher.

Gold opened marginally lower after losing 0.5% on Wednesday, but got a shot in the arm following macroeconomic reports and as the dollar faltered. Gold prices started to reverse higher after the Commerce Department said durable-goods orders fell 1.1% in May, the largest drop since August. A decline of nearly 30% in orders for civilian aircraft accounted for most of the decline. Excluding transportation, orders were up 0.9% in May. "We're seeing the flight-to-quality bid back in gold," said Matt Zeman, a trader at LaSalle Futures Group in Chicago. "Again people are swooping into buying when it's basically on sale." See fulls story.