Daily Gold Update

Source: MarketWatch

New York— Gold futures rose Monday for a third straight session, moving above $900 an ounce to their highest level in more than three months, as a weaker dollar enhanced the metal's investment appeal. Gold for February delivery was last up $15.20, or 1.7%, to $911 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $916.30 earlier, the highest since Oct. 10. Gold had fallen in the first half of January, mostly playing off a stronger dollar. It dropped to near $800 an ounce as recently as Jan. 15.

As the greenback slowly weakened and as investors bought gold for wealth preservation amid the deepening financial crisis, gold prices rebounded. Gold has gained more than $100 since Jan. 15. On Monday the dollar came under broad selling pressure. Gold's improved luster resulted from "widespread global economic gloom and ultra-low global interest rates," wrote Ashraf Laidi, chief market strategist at CMC Markets in London. "As the price of money [interest rates] is held down by central banks, the price of its competitor [gold] pushes higher on the lack of yield reward in monetary alternatives," he added. See full story.