December gold futures are expected to open floor trading in New York around $12 an ounce higher Wednesday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. December silver is expected to be 30 cents higher. December gold has been as high as $1,023.30 an ounce, its strongest level since July 2008. December silver has been up to $17.37, its strongest level since August 2008. Cash gold rallied to an 18-month high overnight, heightening expectations it will break the record high in coming days. The dollar's sharp slide against the euro gave fresh momentum to gold, which had been struggling to hold above $1,000 per troy ounce, London-based analysts said. At 7:54 a.m. EDT, spot gold was trading up $9.65 to $1,016.55. The euro is up to $1.4673 and has been as muscular as $1.4714, compared to $1.4667 late Tuesday afternoon. In screen trading ahead of the pit open, the December S&P 500 futures are up 4.80 points to 1,050.70. October crude oil is down 18 cents to $70.75 a barrel in overnight activity. U.S. economic data Wednesday include: - the August Consumer Price Index at 8:30 a.m. EDT (1230 GMT), forecast to rise 0.4%, but be up 0.1% for the core rate excluding food and energy; - the second-quarter current-account deficit due out at 8:30 a.m. EDT (1230 GMT), expected to be $92.5 billion; - July Treasury international capital flows at 9 a.m. EDT (1300 GMT); - August industrial production at 9:15 a.m. EDT (1315 GMT), forecast to be up 0.6%, with capacity utilization expected to uptick to 69% from 68.5% in July; and - the National Association of Home Builders September housing-market index at 1 p.m. EDT (1700 GMT), expected to rise to 19 from 18 the prior month. In New York Tuesday, gold futures settled above $1,000 for the third consecutive trading session, boosted by a weakening U.S. dollar and growing optimistic price sentiment as the metal continues holding around the psychologically important benchmark. December gold rose $5.20 to settle at $1,006.30 an ounce, while December silver advanced 37.7 cents to settle at $17 an ounce. Comex gold warehouse stocks were up 28,172 ounces at 9,211,550 ounces Tuesday, while silver stocks were up 586,101 ounces at 117,386,488 ounces.

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