Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures ran with the bulls Wednesday to settle at their 16th record high in five weeks, as a sputtering U.S. dollar and expected Federal Reserve intervention in the economy drove demand. Gold for December delivery closed up $23.80, or 1.8%, to $1,370.50 an ounce on the Comex division of the New York Mercantile Exchange. Gold closed at a record high of $1,354.40 an ounce on Monday.

Adam Klopfenstein, senior market strategist at Lind-Waldock, said a variety of factors are fueling the current rush to gold. �We�re seeing a consistent weakening in the dollar as we go into the elections; currency intervention as nations want to keep their currencies cheap to prop up exports; strength in equities causing U.S.-based assets to become attractive for foreign investors; future inflation likely to result from quantitative easing — so gold is wearing more than one hat,� Klopfenstein said. Klopfenstein, however, cautioned that gold has become too easy to buy and hold in a time of daily record-breaking prices, and expects a correction at some point, although unlikely in the next couple of days. See full story.