Daily Gold Update

Source: Marketwatch

New York— Gold futures rose Monday to end at their highest level in more than five weeks as a private-sector rescue of U.S. lender CIT Group raised economic optimism, pressuring the dollar lower against most of its major rivals. A weaker dollar tends to boost gold's appeal as a hedge against a weak currency. Other metals also moved broadly higher. Copper futures, an important gauge of economic growth, rose to the highest level in nine months.

On the Comex division of the New York Mercantile Exchange, August gold gained $11.30, or 1.2%, to close at $948.80 an ounce, the highest settlement price since June 11. It rallied to $955.40 earlier, "The weaker U.S. dollar and rising oil prices gave gold another boost," said Barbara Lambrecht, an analyst at Commerzebank, in a note. However, "a change in sentiment could potentially trigger a sharper price correction." See full story.