Gold News & Info

Source: MarketWatch

New York— Gold futures ended sharply higher Wednesday, boosted by rising oil prices and a decline in the U.S. dollar against other major currencies. Gold for August delivery surged $11.70 to end at $882.90 an ounce on the New York Mercantile Exchange. "The dollar lost upward momentum," analysts at Action Economics wrote in a research report. "Investors and speculative accounts favor gold as a result, with the yellow metal seen as a safe alternative in volatile markets." In the currency markets, the dollar declined against major counterparts as traders took profits on the greenback's recent gains against the European single currency.

"Looking ahead, short-term direction is still likely to be dollar-driven," James Moore, an analyst at TheBullionDesk.com, wrote in a research note. "However, with inflation on the increase, longer-term investors should continue to look favorably towards gold, with the metal likely to carry out further base building ahead of $850 before rallying back towards $1,000 later in the year," Moore added. See full story.