Daily Gold Update

Source: MarketWatch

New York— Gold futures surged for a second day Thursday, with the benchmark contract topping $900 an ounce for the first time in six weeks, as money injections from the Federal Reserve and five other central banks failed to calm nervous investors. After a $70 rally on Wednesday, the biggest one-day gain in dollar terms, gold futures rose $50.20 to $900.70 an ounce after jumping as high as $926 on the Comex division of the New York Mercantile Exchange.

This recent jump in gold prices "can be attributed to large amounts of money fleeing to the yellow metal as a safe haven in these troubled times," said Sam Kirtley, editor of Gold-Prices.biz. The financial crisis "will probably worsen over the coming months," he added, and the money the central banks are pumping into the system is adding to inflationary pressures, which "are certainly showing in gold [prices]." Recent jumps in gold prices also came after market fund pioneer The Reserve shook the market by cutting the net asset value of its flagship Primary Fund Wednesday. This lead to firms like Deutsche Bank, Legg Mason and others to try to calm investors and prevent a run on their funds. See full story.