Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures advanced for the second day in a row Wednesday, as copper and silver led the way on higher hopes for the global economy after Greece�s vote for austerity. The Greek parliament approved a package of additional austerity measures and asset sales in a bid to avert a potentially devastating default, even as thousands clashed with police in Athens in protest of the spending cuts. The approval also had the effect of putting pressure on the U.S. dollar, benefiting commodities in general. Gold for August delivery gained $10.20, or 0.7%, to $1,510.40 an ounce on the Comex division of the New York Mercantile Exchange. It traded as high as $1,513.80 an ounce. Silver futures rallied 3.3% and copper gained 2.8%.

Richard Hastings, macro strategist at Global Hunter Securities, also attributed gold�s gains to �speculative trending to capture a potential problem in the debt ceiling discussions.� The dollar index, which measures the performance of the U.S. unit against a basket of six currencies, fell to 74.674 from 75.059 late Tuesday. A weaker dollar generally translates into a positive for commodities prices as it makes them less expensive for holders of other currencies. For gold, it adds an extra layer of support as many investors seek gold against perceived weakness in the dollar. See full story.