Daily Gold Update

Source: Marketwatch

San Francisco— Gold and silver futures rallied on Wednesday, with investors back into precious metals after a recent selloff and as higher prices for other commodities highlighted lingering fears of inflation. Gold for June delivery rose $15.80, or 1.1%, to $1,495.80 an ounce on the Comex division of the New York Mercantile Exchange. Gold on Tuesday slid $10.60 to the lowest settlement since April 14. Silver for July delivery advanced $1.61, or 4.8%, to $35.10 an ounce. In the previous session, silver dropped to its lowest close since Feb. 25.

�Silver is the one galloping,� said Adam Klopfenstein, a senior market strategist at Lind Waldock in Chicago. �If this is trade-based or a change of sentiment, we�ll find out in the follow-up (Thursday).� A rally for oil futures, back at more than $100 a barrel, and corn and wheat futures brought back fears of inflation, he added. The dollar also declined against major currencies, providing an extra boost to commodities, which gained across the board. The dollar index, which compares the U.S. unit to a basket of six currencies, traded recently at 75.289 from 75.441 in late North American trading on Tuesday. See full story.