Daily Gold Update

Source: MarketWatch

New York— Gold futures closed above $900 per ounce Wednesday to tally a three-session rise of 8.8% as investors sought refuge against inflation after major central banks around the world cut interest rates in concert. The Federal Reserve, European Central Bank and four other central banks lowered interest rates in a coordinated effort to combat world's deepening financial turmoil. "Coordinated central bank aggressive interest rate cuts should lead to gold surging in value in the coming months" as "currency devaluations look increasingly likely," said Mark O'Byrne, executive director at Gold and Silver Investments.

Gold for December delivery gained $24.50, or 2.8%, to close at $906.50 an ounce on the Comex division of the New York Mercantile Exchange. It was the first time the contract topped the $900 level since Sept. 29. The metal has climbed $73.30 from Friday's closing level as investors snapped up the precious metal as a safe haven amid the financial turmoil. "Gold's ultimate status as a safe-haven asset is showing its luster again as the financial crisis escalates," said Peter Spina, president of GoldSeek.com. "Paper money from all walks of life is flowing into gold as uncertainty and fear rocket to new heights." See full story.