Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures advanced Wednesday, recouping at least some portion of the prior session�s plunge, marred as China�s surprise hike in its key interest rate strengthened the U.S. dollar. A weaker dollar on Wednesday prompted a return to the metal. Gold for December delivery settled $8.20 higher at $1,344.20 an ounce on the Comex division of the New York Mercantile Exchange. Other metals tracked bullion, with December silver advancing 8 cents, or 0.4%, to $23.86 an ounce.

Gold had lost some steam at the start of floor trading, but soon found its stride, hitting an intraday high of $1,347 an ounce. �We�ve got the dollar selling off today,� helping gold, said Adam Klopfenstein, a senior market strategist at Lind Waldock in Chicago. Tuesday�s dollar strength was �an artificial pop up� following China�s surprise move to hike interest rates. China raised its key lending and deposit rates for the first time in about three years, a move aimed at curbing inflation. Investors scrambled for investments deemed safer and eschewed commodities. The dollar advanced more than 1% on Tuesday, its biggest advance since August. See full story.