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Gold Piles on Gains Amid Dollar Weakness
Moming Zhou, MarketWatch
SAN FRANCISCO (MarketWatch) -- Gold futures rose for a third day, closing up $26 an ounce in an abbreviated post-holiday session after the dollar touched a new low against the euro, increasing the value of gold as an investment safe haven.
Gold for December delivery settled up 3.3%, at $824.7 an ounce in thin trade on the New York Mercantile Exchange, the highest closing level since Nov. 12. It touched an intraday high of $825 earlier. The futures contract has been rising since Tuesday.
The euro reached a new high of $1.4966 overnight as worries about the U.S. economy and the continuing credit crisis weighed on the dollar, but has since eased down to $1.4830. See Currencies.
"The U.S. dollar started to look like on an overcooked turkey over the holiday recess, as fresh selling brought it to under the 75 mark on the index," said Jon Nadler, a senior analyst at Kitco Bullion Dealers. "The greenback's woes prompted renewed buying of gold."
Gold touched an intraday high of $847.50 on Nov. 8, the highest level in 28 years. The record high for Nymex gold was $875 set on Jan. 21, 1980, and the record settle was $825.50 set on the same date.
Other metals prices were also higher on the Nymex. December silver gained 31.5 cents to $14.735 an ounce, copper for December delivery rose 10.3 cents to $2.991 a pound, and January platinum added $15.8 to $1,483 an ounce. December palladium was up $3.55 at $361.5 an ounce.
Gold-warehouse inventories declined 495 troy ounces to stand at 7.361 million troy ounces as of late Wednesday, according to Nymex data. Silver inventories were unchanged at 132.6 million troy ounces, and copper supplies were also unchanged at 17,981 short tons. 
Moming Zhou is a MarketWatch reporter, based in San Francisco.
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