Daily Gold Update

Source: Marketwatch

San Francisco— Gold prices settled at a record Tuesday, slicing through the $1,750-an-ounce milestone as a selloff in global stock markets drew safety-seeking investors to the metal. Gold futures for delivery in December added $29.80, or 1.7%, to end at $1,743 an ounce on the Comex division of the New York Mercantile Exchange. The contract traded as high as $1,782.50 an ounce, according to FactSet Research, an intraday record for the metal. Gold has gained 23% this year, its 10th straight year of gains, and so far this week has risen 5.5%.

�I suspect gold is going to keep going, I can�t come up with any roadblocks when it comes to gold pushing foward,� said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago. �Volatility is here to stay.� Any corrections are likely to be shallow, shaving $40 to $50 off prices and based solely on profit-taking, he added. �At this rate, we can see $1,800, $1,850 (an ounce) in a matter of weeks,� Zeman said. Some investors also sought gold on expectations the U.S. Federal Reserve might signal more quantitative easing to try to revive the U.S. economy. The U.S. Federal Open Market Committee is scheduled to meet Tuesday to decide on its monetary policy, amid a debate over whether weakening economic indicators will force its hand in launching a fresh round of monetary easing. That possibility was lending some support to metals. Read story on the Fed meeting. The U.S. credit downgrade, coming so close on the heels of the debt-ceiling crisis, has left investors searching for a safe haven and choosing gold, HSBC analyst James Steel wrote in a report to clients, referring to Standard & Poor�s decision to downgrade U.S. debt late last week to AA+ from AAA.

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