MADRID (06/11) - MarketWatch — Gold futures gained on Wednesday,
rebounding from a three-week low as U.S. dollar weakness boosted demand
for the precious metal.Gold for December delivery rose $8.70, or
0.7%, to $1,316.50 an ounce on the New York Mercantile Exchange. Silver
was up 25 cents to $21.88 an ounce. The ICE dollar index, which measures the currency against six rivals, fell to 80.545 from late Tuesday’s 80.709. Dollar
weakness tends to boost gold prices, while dollar strength makes
dollar-denominated commodities such as gold more expensive for other
currency holders. On Tuesday, a stronger dollar helped to weigh
on gold prices. Gold settled Tuesday at its lowest level since Oct. 16,
according to FactSet data tracking the most-active contracts. The
Institute for Supply Management on Tuesday showed that U.S.
service-sector companies expanded at a faster pace in October. But the
U.S. jobs report for October, due on Friday, is this week’s clear main
course and will likely have the most impact on the direction of gold
prices.
