Breaking Market Updates present a daily selection of the most important financial news stories from around the globe, with a specific focus on the precious metals and stock markets. To view Breaking Market Updates Archives, click here.

May 9: Gold pulls back, but still trades higher for the week

Source: Marketwatch

New York -- Gold futures edged lower Friday, retreating from an earlier high near $890 an ounce but poised to post a gain of more than 2% for the week as traders eyed crude oil's surge to a record high above $126 a barrel as well as some weakness in the U.S. dollar. Gold for June delivery fell by $5.10 to $877 an ounce on the New York Mercantile Exchange. It traded as high as $888 during the session. On Thursday, gold rallied $10.90 to end at $882.10 an ounce. The contract traded well above last Friday's closing level of $858.

Crude-oil futures climbed past the $126 a barrel mark Friday, poised to score a weekly gain with strong demand for diesel fuel and concerns about global crude supplies sending prices to a fresh all-time high. On the currency markets, the U.S. dollar fell against most of its major counterparts, with the dollar index dropping 0.4% to 73.17. Dollar weakness typically benefits dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. See full story.

May 8: Gold futures rise, underpinned by soft dollar

Source: Marketwatch

New York -- Gold futures rose to trade near $880 an ounce Thursday, underpinned by crude-oil prices near a record high as well as weakness in the U.S. dollar. Gold for June delivery gained $8.30 at $879.50 an ounce on the New York Mercantile Exchange.

"The dollar seems set to provide much of the day's trading direction, while the start of Akshaya Tritiya celebration in India should see physical buying and provide background support," said James Moore, analyst at TheBullionDesk.com. On Wednesday, gold closed $6.50 lower at $871.20 an ounce, after climbing nearly $27 over the previous three trading sessions. The dollar was modestly lower Thursday, losing ground to the euro and the pound after both the European Central Bank and the Bank of England both decided to hold policy steady. ECB President Jean-Claude Trichet cited inflation risks in his statement, further bolstering the common currency. See full story.

May 7: Gold ends more than $6 lower as dollar strengthens

Source: Marketwatch

San Francisco -- Gold futures closed with a loss of more than $6 an ounce Wednesday with strength in the U.S. dollar against other major currencies prompting the precious metal to end a three-session winning streak Gold for June delivery fell to a low of $865.50 an ounce on the New York Mercantile Exchange. It closed $6.50 lower at $871.20, after climbing nearly $27 over the previous three trading sessions. "Gold traded back on the defensive after the dollar reasserted itself in the European morning," said analysts at Action Economics.

The dollar rose Wednesday as downbeat U.S. home sales data failed to offset the effects of weak U.K. and eurozone data earlier. The dollar index, which measures the greenback against a basket of six major currencies, was at 73.53 in North American trading, compared with 73.015 late Tuesday. The greenback's rise came despite a drop in the National Association of Realtors' index of sales contracts on previously owned homes. The index, considered a leading indicator of existing home sales, fell 1.0% in March, and was 20.1% below the March 2007 level. See full story.

May 6: Gold futures rise as crude oil hits record high

Source: Marketwatch

San Francisco -- Gold futures accelerated their gains Tuesday, boosted by oil's surge to a record high above $122 a barrel and a decline in the U.S. dollar. Gold for June delivery gained $8.70 to $882.80 an ounce on the New York Mercantile Exchange. The contract is poised to add to the more than $23 gain it's seen over the past two trading sessions. Crude-oil futures gained for a third day, rising to a new record of above $122 a barrel, as weakness in the U.S. dollar and global supply concerns continued to boost oil prices. See Futures Movers.

On the currency markets Tuesday, the U.S. dollar traded lower against most of its major rivals. The dollar index fell 0.4% to 72.88. Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, because it makes them cheaper for holders of other currencies. "Seasonally strong physical demand should continue to provide a good base for gold in the coming sessions, and with oil prices setting fresh records, investors may look to increase their gold holdings as a hedge against inflation," said James Moore, an analyst at TheBullionDesk.com, in a research note. See full story.

May 5: Gold ends more than $16 higher on crude oil rally

Source: Marketwatch

New York -- Gold futures closed more than $16 an ounce higher Monday to mark two winning sessions in a row, as crude-oil prices climbed to a fresh record. Gold for June delivery closed at $874.10 an ounce on the New York Mercantile Exchange, up $16.10, or 1.9%. It climbed as high as $874.70 during the trading session. "I'd watch for dollar and energies to continue to direct moves in gold," said Zachary Oxman, a senior trader at Wisdom Financial, in emailed comments.

June crude rose past $120 a barrel in New York to touch a new record, propelled by oil supply disruptions in Nigeria. And on the currency markets, the U.S. dollar weakened even after a report from the Institute for Supply Management showed that nonmanufacturing sectors of the U.S. economy expanded during April after three months of contraction. The ISM nonmanufacturing index rose to 52.0% from 49.6% in March. The increase was unexpected. Economists were looking the index to inch lower to 49.4%. See full story.

May 2: Gold futures recover but close with weekly loss

Source: Marketwatch

New York -- Gold futures recovered some of their recent losses to finish higher Friday, but the metals contract still ended the week with a loss of nearly $32 an ounce. Traders kept a close watch on the U.S. dollar, which jumped following a report showing that the U.S. labor market was not as weak as expected in April. Gold for June delivery closed $7.10 higher at $858 an ounce on the New York Mercantile Exchange after reaching an intraday high of $860.50.

Even though the dollar rallied after the jobs data -- dollar weakness tends to benefit dollar-denominated commodities, such as gold and oil, because it makes them cheaper for holders of other currencies -- rising crude futures provided some support for gold. See full story.

May 1: Gold futures knocked lower by rising dollar

Source: Marketwatch

New York -- Gold futures fell more than 1% Thursday, as a rise in the U.S. dollar dampened investment demand for the precious metal. Gold for June delivery dropped $14.20, or 1.6%, to settle at $850.90 an ounce on the New York Mercantile Exchange. Gold had finished Wednesday's regular trading session sharply lower, ending down $11.70 at $865.10. However, in electronic trading, gold rallied, boosted by the Federal Reserve's decision to cut the fed funds rate by 25 basis points to 2.0%.

"Despite the lack of a clear pause signal in yesterday's Fed announcement, the markets are treating May/June as the pivot point beyond which they can no longer reliably depend on ever cheaper dollars to fuel speculative binges in commodities," said Jon Nadler, senior analyst at Kitco Bullion Dealers. See full story.

April 30: Gold futures surge after Fed cuts interest rates

Source: Marketwatch

New York -- Gold futures gained in electronic trading Wednesday, rebounding from their decline in the regular session, as the Federal Reserve's decision to cut the fed funds rate by 25 basis points boosted demand for the precious metal. Gold for June delivery rose $14.90 to $880 an ounce in electronic trading on the New York Mercantile Exchange. Shortly before the Fed announcement, gold futures finished regular trading at $865.10, down $11.70.

The Federal Reserve cut short-term interest rates for the fourth time this year, signaling that it remains troubled by the economic outlook. The Fed lowered its benchmark federal funds rate by a quarter percentage point, to 2%, in line with market expectations. "The [Fed] statement was very economic neutral and still seemed to focus on the risk of inflation," said Zachary Oxman, a senior trader at Wisdom Financial. "I'd watch for dollar weakness and gold strength off this report today." See full story.

April 29: Gold futures fall more than 2% on dollar, oil

Source: Marketwatch

New York -- Gold futures fell more than 2% Tuesday, as strength in the U.S. dollar and declining oil prices pressured investment demand for the precious metal. Gold for June delivery dropped $20.70 to $874.80 an ounce on the New York Mercantile Exchange.

"I think the main driver today is the pricing in of the next Fed rate cut and the strength in the dollar," said Zachary Oxman, a senior trader at Wisdom Financial. "It is quite possible that the Fed has cut to the point where credit will be loosening, which would signal a renewal for the U.S. economic growth cycle," Oxman said. "If this is the case, watch for a rotation out of gold and flight-to-quality trades and back to the stock market." The dollar held onto most of its gains ahead of Wednesday's key U.S. Federal Open Market Committee decision on interest rates. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, gained 0.3% to 72.78. See full story.

April 28: Gold rises as record crude raises inflation concerns

Source: Marketwatch

San Francisco -- Gold futures rose on Monday after the crude-oil contract neared $120 a barrel, raising the metal's appeal as a hedge against inflation. Gold for June delivery gained $6.80, or 0.8%, to $896.50 an ounce on the New York Mercantile Exchange. Crude futures rose overnight to a new record high of $119.93 a barrel in electronic trading.

"Metals could not help but notice the explosive move in crude," said Edward Meir, an analyst at MF Global, in a research note. "We expect commodities in general to remain firm at least through to midweek, as the strong energy complex sets the tone, while the weakness in the dollar should also help." The dollar rose slightly on Monday, limiting gold's gains, as traders weighed the odds of the Federal Reserve further reducing benchmark U.S. interest rates. Dollar-denominated commodity prices tend to rise when the currency loses ground. The dollar index, which tracks the value of the greenback against a basket of other currencies, rose slightly to 72.68. See full story.

April 25: Gold futures end little changed, as dollar gains

Source: MarketWatch

New York -- Gold futures ended little changed Friday, after two days of sharp losses, as the U.S. dollar made gains against other major currencies. Gold for June delivery ended up 30 cents at $889.70 an ounce on the New York Mercantile Exchange. Gold posted a drop of $25.50 from last Friday's closing level of $912.20 an ounce.

"Some bargain-hunting has provided temporary support, yet there is wariness that any change in Fed rate expectations could mark a broader shift in dollar sentiment, which may have a detrimental effect on commodities as a whole," said analysts at Action Economics. The Federal Reserve will convene policymakers to consider the U.S. economy and monetary policy next week, on April 29 and 30. The dollar was mostly higher Friday, holding onto gains against the euro even after a consumer sentiment index came in below expectations. See full story.