Daily Gold Update

Source: Marketwatch

New York— Gold futures climbed more than 2% Monday to above $1,120 an ounce as the U.S. dollar weakened on the first full trading day of the new year, raising the metal's investment appeal. Other commodities also gained, getting a lift after China and the U.S. reported upbeat manufacturing data. Palladium rose to the highest level in more than 17 months. Gold for February delivery rose $25.60, or 2.3%, to $1,121.80 an ounce on the Comex division of the New York Mercantile Exchange, after rising as high as $1,124.60 earlier. Futures prices ended the year's trading up 24% to mark their ninth-consecutive yearly gain, but they are off their record high above $1,220 an ounce seen in early December.

"Positive manufacturing data from China has given equities and commodities a lift," said James Moore, an analyst at TheBullionDesk.com. Gold prices "in the short-term will continue to look to the dollar for direction." Investors will increase "their exposure as a way to offset devaluation of fiat currencies and take advantage of improving fundamentals." See full story.