Gold News & Info

Source: MarketWatch

San Francisco— Gold futures posted strong gains Monday, as a decline in the U.S. dollar boosted demand for the precious metal. Gold for August delivery ended up $13.20 to $886.30 an ounce on the New York Mercantile Exchange. Earlier in the session, gold rose to an intraday high of $897 an ounce. Gold for August delivery rose as high as $897 an ounce on the New York Mercantile Exchange. It was last up $17.40, or 2%, to $890.50. Last week, gold futures fell $25.90, or 2.9%.

A new high in oil prices boosted gold's appeal as an inflation hedge. Crude-oil futures soared to a record high just below $140 a barrel Monday, supported by weakness in the U.S. dollar and a temporary shut down of an oil platform in the North Sea. "Inflation is becoming a real problem as oil skyrocketed today … even after news that the Saudis intend to increase production," said David Beahm, vice president at Blanchard and Company Inc., in an email. But the dollar is the main factor that is moving the price of gold around, he said. "While some feel that the Fed may raise interest rates in the coming months in order to curb inflation, increasing the value of the dollar, it is our opinion that the health of the U.S. economy is still playing an active role in their decision making," he said. Given that, the Fed may be "a bit hesitant to increase rates." See full story.