Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled at a record high on Wednesday as a rally for crude reinforced fears of inflation and investors remained concerned about the Middle East and North Africa and Japan. Gold for April delivery rose $10.40, or 0.7%, to $1,438 an ounce on the Comex division of the New York Mercantile Exchange. That was enough to beat the previous record settlement of March 2, when gold closed at $1,437.70 an ounce. �Instead of looking for a reason to buy gold, no one can find a reason not to buy gold,� said Adam Klopfenstein, a senior market strategist with Lind Waldock in Chicago. Unrest in the Middle East and North Africa, the destruction in Japan, continuation of the U.S. Federal Reserve�s easing policy, and inflation are all working to support the metal, he added.

Gold is likely to challenge $1,500 sooner rather than later, especially if prices firm around $1,475 an ounce in the coming sessions, Klopfenstein said. Gold gained momentum as the session progressed, leaving behind tepid early gains to rally as crude oil also jumped. Investors are worried about food and energy inflation on the back of rallying crude, said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. Crude-oil futures topped $106 a barrel before moderating some of their gains on Wednesday, propelled by continued worries about the Middle East and North Africa. See full story.