Gold News & Info

Source: Marketwatch

San Francisco— Gold futures lost some steam as Monday�s floor trading progressed, but held on to its early lead and closed 1% higher as weakness in the U.S. dollar lured investors back to the precious-metals sector. Gold for December delivery climbed $13.80, or 1%, to trade at $1,338.90 an ounce on the Comex division of the New York Mercantile Exchange. The contract earlier hit an intraday high of $1,349.50 an ounce. The overall downward march for the dollar and expectations of a fresh round of economic stimulus are behind gold�s recent record highs, but the contract did lose some of its gains as the dollar came off its lows.

�It�s starting to pause for a breather,� said Michael Hewson, a market analyst at CMC Markets in London. �It is looking a little bit stretched at the moment,� even though longer-term prospects are still favorable for gold, he added. The quantitative easing prospects and a gold-buying festival arriving in India in early November is likely to prevent any steep dips, but much of the monetary easing expected is already priced in, he said. See full story.