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.

November 6: Gold taps new record as U.S. joblessness hits 10%

Source: Marketwatch

New York -- Gold futures barreled to a new record high above $1,100 an ounce on Friday, as news that the U.S. unemployment rate topped 10.2% in October boosted expectations the Federal Reserve will keep interest rates near zero well into next year, pressuring the dollar. Gold for December delivery, the most active futures contract, rose as high as $1,100.50 an ounce on the New York Mercantile Exchange. It gained up to $1,101.90 an ounce in electronic trade. It recently gained $5.20, or 0.5%, to $1,094.50 an ounce. Industrial metals, such as copper, however, moved lower. Copper, sometimes called "the metal with a Phd in economics," fell 1 cent, or 0.4%, to $2.94 a pound.

"With unemployment at 10%, the implications for Fed policy is that they have their hands tied and cannot defend the dollar," said Joe Foster, manager of the Van Eck International Investors Gold Fund. "We're going to see lots of new records going forward," he said. "By year end, it wouldn't surprise me to [see gold] test $1,200 and then $1,300 by early next year before we see some consolidation." See full story.

November 5: Gold extends win streak but closes under $1,090

Source: Marketwatch

New York -- Gold futures rose for a fourth straight session Thursday, benefiting from more central bank decisions to keep rates at historically low levels, but closed below the $1,090 mark as the dollar gained against some rivals. Gold for December delivery, the most active futures contract, ended the floor session up $2, or 0.2%, at $1,089.3 an ounce. It finished off the session's highs of $1,095.2 an ounce, however, and lower than the $1,098.50 level reached late Wednesday, as the dollar gained against some trading partners in volatile trading.

"The dollar chop today as well as a generally light trade is halting the moves in gold," said Zachary Oxman, managing director at commodities trading firm TrendMax Futures in Rancho Santa Fe, Calif., in an email interview. The more thinly traded November contract also closed under $1,090, gaining $2, or 0.2%, to $1,088.7 an ounce. December copper lost 4 cents, or 1.2%, $2.957 a pound. See full story.

November 4: Gold heads toward $1,100, hits fresh record

Source: Marketwatch

New York -- Gold futures surged to record highs above $1,090 an ounce Wednesday, as the dollar sold off and buyers piled in hoping to catch the precious metal's recent rise. Gold for November delivery rose to $1,094 an ounce on the Comex division of the New York Mercantile Exchange, the highest level for a Comex front-month contract. The thinly traded contract ended up 0.2% at $1,086.70 an ounce. Gold for December delivery, the most actively traded contract, also ended up 0.2% on the session, at $1,087.30 an ounce, after setting an intraday high of $1,096.20 an ounce.

Central banks in China, Russia and other major emerging markets have indicated "interest in building their holdings of gold as part of their diversification away from the U.S. dollar," said Nicholas Brooks, head of Research and Investment Strategy at ETF Securities. "This appears to be a structural change that may support the gold price on a medium- to longer-term basis," he said. The dollar weakened in Wednesday's foreign-exchange trading. Gold prices tend to rise when the dollar falls. See full story.

November 3: Gold climbs to record as India’s central bank buys IMF bullion

Source: Bloomberg

New York -- Gold jumped to a record after India’s central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation that there may be more official purchases. Gold futures for December delivery rose to a record $1,087 an ounce on the New York Mercantile Exchange’s Comex unit and traded at $1,084.20 at 1:28 p.m., up $30.20, or 2.9 percent. A close at that price would be the biggest gain for a most-active contract since March 19. “This will encourage other countries and other investors, especially Indians, who are big buyers anyway, to jump into the market,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois.

The Reserve Bank of India paid $6.7 billion for the bullion, which it bought from Oct. 19 to Oct. 30. It was “the biggest single central-bank purchase that we know about for at least 30 years in such a short period,” said Timothy Green, the author of “The Ages of Gold.” “The only comparable event was the U.S.’s steady purchases in the 1930s and 1940s.” Prices also rose to an all-time high in gold traded in Indian rupees. Central banks, the biggest holders of gold, may diversify out of the dollar and buy bullion as ballooning U.S. debt and low interest rates weaken the currency. “It is but a matter of time until China and the IMF announce much of the same,” said Dennis Gartman, an economist and the editor of the Gartman Letter in Suffolk, Virginia. See full story.

November 2: Gold futures end above $1,050 an ounce as dollar falls

Source: Marketwatch

New York -- Gold futures gained more than 1% to settle above $1,050 an ounce on Monday, as upbeat economic reports from the U.S., China and Europe put early pressure on the dollar, lifting the appeal of the precious metal. Gold for December delivery gained $13.60, or 1.3%, to end at $1,054 an ounce on the New York Mercantile Exchange. The contract earlier rose as high as $1,062.40 an ounce but lost ground as stocks began selling off, lifting demand for the dollar as a safe haven. After its official close on NYMEX, gold turned negative in electronic trade, recently losing 30 cents.

Gold prices fell slightly on Friday but still held onto a 3.8% advance for the month of October. October "is traditionally a poor month for gold, unlike the seasonally stronger months of November and December," said Frank Wall, metals analyst at GoldCore, who sees last month's gains as a signal that the precious metal will advance further. Other metal prices finished mixed on Monday, with December silver futures rising 19 cents, or 1.2%, to $16.44 an ounce but December copper losing 1 cent to $2.94 a pound. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rebounded to 76.357, after falling as low as 75.93 following the U.S. data early Monday. That compares with 76.320 in late U.S. trade Friday. The U.S. unit has tended to be used as a safe-haven currency over the past year, losing its appeal on upbeat news. A weaker dollar, in turn, helps boost hard assets, such as commodities and gold. See full story

October 30: Gold falls on U.S. data, but still up nearly 4% in October

Source: Marketwatch

New York -- Gold futures finished lower on Friday, but held on to strong gains in October, as a firmer dollar and mixed U.S. economic reports dimmed the metal's appeal as a hedge against inflation. The U.S. government reported consumer spending fell sharply in September, while employment costs rose at the smallest annual rate on record in the third quarter. And while more U.S. reports provided a mixed picture, stocks sold off on Wall Street, after Thursday's sharp rally, while the dollar gained back some ground, further pressuring hard assets such as gold and commodities. Gold for December finished down $6.70, or 0.6%, at $1,040.40 an ounce on the Comex division of the New York Mercantile Exchange.

The precious metal still gained 3.8% for the month of October and it has surged more than 18% year to date, according to FactSet Research. At Merrill Lynch, the commodities research team remains confident that gold will eventually rise to $1,500 an ounce due to increased credit risk, dollar weakness and commodity strength. "The market seems to have moved in this direction and, despite the rally, bullish sentiment remains strong," Merrill analyst Gustavo Soares wrote in a note. See full story.

October 29: Gold rebounds as U.S. returns to growth, dollar falls

Source: Marketwatch

New York -- Gold futures closed above $1,047 an ounce, breaking five straight sessions of losses, after a report showing the U.S. economy expanded for the first time in a year enticed investors back to commodities and stocks. Gold for December delivery added to gains throughout the session to end at $1,047.10 by the close of floor trading in New York. Gold rose $16.60 an ounce, or 1.6%, to mark the contract's highest close since Friday. December silver rose 42 cents, or 2.6%, to $16.655 an ounce.

"It's the better economic figures, better oil and better moving averages in gold," that are supporting prices Thursday, said George Gero, vice president of global futures at RBC Capital Markets. The Commerce Department said Thursday U.S. gross domestic product rose at a 3.5% annual pace in the third quarter, the strongest growth in two years, and matching a survey of economists polled by MarketWatch.com. Separately, jobless claims fell 1,000 to a seasonally adjusted 530,000 last week, the Labor Department said. Economists were looking for first-time claims to fall to 524,000. See full story.

October 28: Gold falls as stronger dollar reduces investment demand

Source: Bloomberg

New York -- Gold fell to a three-week low in New York as a rally in the dollar curbed demand for the precious metal as an alternative investment. The U.S. Dollar Index, which measures the greenback again six currencies, has risen every day since Oct. 21, when the dollar slipped to a 14-month low against the euro. Gold, which typically moves inversely to the U.S. currency, climbed to a record $1,072 an ounce on Oct. 14. “It’s all very much dollar-driven,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. “Now, you’re seeing a direct correlation between the dollar and gold.”

December gold futures fell $3.70, or 0.4 percent, to $1,031.70 an ounce at 1:15 p.m. on the New York Mercantile Exchange’s Comex division. A close at that price would mark the fifth straight decline, the longest losing streak since March. Earlier, gold slipped to $1,028.50, the lowest since Oct. 6. Hedge funds and other large speculators in gold futures trimmed net-long positions, or bets on higher prices, by 2 percent as of Oct. 20 from a record the previous week, Commodity Futures Trading Commission data show. Miners, producers and commercial users increased their net-short positions. See full story.

October 27: Gold declines on concern rising dollar may erode demand

Source: Bloomberg

New York -- Gold fell for a fourth straight session, the longest slide since August, amid concern that the dollar will extend a rally, curbing demand for the precious metal as an alternative asset. The dollar rose against a basket of six major currencies, adding to three consecutive advances since Oct. 21, when it touched a 14-month low. Gold, which often moves inversely to the greenback, has dropped 2.7 percent in the past four sessions.

“Gold doesn’t have that much buying interest,” said Matt Zeman, a LaSalle Futures Group Inc. metals trader in Chicago. “The dollar could undergo a wicked short-covering rally, and the gold market needs to look out below.” Gold futures for December delivery fell $7.40, or 0.7 percent, to $1,035.40 an ounce on the Comex division of the New York Mercantile Exchange. The slump was the longest since Aug. 10. The metal has climbed 17 percent this year, reaching a record $1,072 on Oct. 14. See full story.

October 26: Gold futures close lower as U.S. dollar rebounds

Source: Marketwatch

New York -- Gold futures ended lower Monday, part of a broad decline in commodities, as the U.S. dollar advanced on fresh worries about the financial sector. December gold futures Monday fell $13.60, or 1.3%, to $1,042.8 an ounce at the close of floor trading in New York, The contract earlier had hit an intraday high of $1,060.80 an ounce in electronic trading on Globex. Copper for December delivery lost 2 cents, or 0.8%, to $3.011 a pound. December silver fell 63 cents, or 3.5%, to $17.095 an ounce.

Gold, seen as a safe place to park cash in uncertain times, often trades in the opposite direction as U.S. stocks. But lately, both have been rising together as a several-months slide in the U.S. dollar has made hard assets such as gold and oil more valuable, and at the same time, supports profits at U.S. companies with international earnings. A reversal of these trends weighed on stocks and commodities Monday. See full story.

October 23: Gold turns lower on stronger dollar, lower crude

Source: Marketwatch

New York -- Gold futures fell Friday, reducing weekly gains as a rebounding dollar curbed its investment appeal. December gold futures ended down $2.20, or 0.2%, to $1,056.40 an ounce on the Comex division of the New York Mercantile Exchange. The thinly traded October contract lost $2.20, or 0.2%, to $1,055.60.

Despite the losses, both contracts rose 0.5% this week, a fourth weekly gain. In currencies, the U.S. dollar rebounded from its 14-month low, with the dollar index up 0.4%. Gold fell "on the back of a stronger dollar," said James Moore, an analyst at TheBullionDesk.com. "Gold will look to hold the current $1,040 to $1,065 range as players continue to look to the dollar and broader risk sentiment for direction." See full story.