MW: Gold futures rally above $1,023/oz as dollar weakens
FRANKFURT (MarketWatch) -- Gold futures rallied above $1,023 an ounce on Wednesday, as the U.S. dollar weakened against major currencies, boosting the appeal of the precious metal.
Gold for December delivery rose to an intraday high of $1,023.30 an ounce in electronic trading on Globex.
The contract was recently up $12, or 1.2%, to $1,018.30 an ounce. December gold is not the front-month contract, but it's the most actively traded contract.
The record intraday price for a front-month gold contract is $1,033.90 an ounce set on March 17, 2008.
"The catalyst for the rally was the weak dollar," wrote analysts at Commerzbank in a note to clients.
The proximity of the all-time high "is increasingly attracting investors to the gold market, reflected in the sharp rise of speculative net-long positions and the recent inflows into the gold ETFs," they said.
Wednesday's U.S. inflation data could provide further support, they added.
Economic data due Wednesday includes August consumer prices at 8:30 a.m. Eastern, and industrial production at 9:15 a.m., along with the NAHB housing market survey for September at 1 p.m.
U.S. stock futures were pointing to a higher start on Wednesday with a focus on the economy after upbeat talk from U.S. Federal Reserve Chairman Ben Bernanke.
Other precious metals also gained, with December silver futures rising 1.9%.
