Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled at a record Wednesday as the U.S. dollar fell sharply and investors bought it as a hedge against inflation and economic uncertainty. Gold for June delivery rose $3.80, or 0.3%, to end at $1,498.90 an ounce on the Comex division of the New York Mercantile Exchange. It traded as high as $1,506.20 an ounce, according to CME Group, which owns Comex. That is an intraday record for the metal. Gold hit intraday and settlement records in the previous three sessions as well.

The dollar was weaker against most major currencies on Wednesday. The euro touched its highest against the U.S. currency since January 2010. Fears of inflation as crude-oil prices rallied Wednesday also aided gold�s record run. Gold is considered the ultimate storer of wealth and as such gains when investors fear price increases and U.S. dollar debasement. The International Monetary Fund on Wednesday piled in on the U.S. misfortunes. The French newspaper Le Monde quoted Olivier Blanchard, the fund�s chief economist, as saying there was reason to be concerned about the U.S. deficit, because the country has no credible to cut it. See full story.