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.

March 11: Gold turns higher as weaker dollar offsets Chinese data concerns

Source: Marketwatch

New York -- Copper and silver futures rose on Thursday after reports that Chile, the world's largest copper producer, was hit by an aftershock to last month's earthquake, with tremors this time measured at magnitude 7.2. Other metals also rose, helped by a weaker dollar, which helped to offset fear Chinese tightening measures.

Gold for April delivery closed up 10 cents at $1,108.20 an ounce. Silver for April also rose, gaining 14.2 cents, or 0.8%, to $17.15 an ounce. "Economic data from China today caused investors to pause and ponder just how hard China may have to put on the brakes to curb growth unleashed by stimulus over the course of the last year," John Stoltzfus, an analyst at Ticonderoga Securities, wrote in a note. See full story.

March 10: Gold, platinum lose steam after strong Chinese data

Source: Marketwatch

New York -- Gold futures finished lower Wednesday, losing early gains as traders took a cautious approach ahead of more economic reports from China following strong February imports data. Gold for April delivery ended down $1.70, or 0.2%, at $1,122.30 an ounce at the New York Mercantile Exchange. It rose as high as $1,128.30 an ounce in morning trade. Analysts at Action Economics said that both oil and gold prices turned lower on expectations that Chinese data due out Thursday on retail sales, production and fixed investment will disappoint.

"However, our China economist warns that the data could be very much distorted by the Lunar New Year holidays," they wrote in a note. Gold and other metals advanced earlier on after a report that showed China's trade surplus narrowed further in February to $7.6 billion from $14.2 billion in January due to soaring imports, reflecting growing domestic consumption. "It is not what China says, it is what they do that reflected in higher crude imports and continued platinum catalyst use," said George Gero, metals analyst at RBC Capital, in emailed comments. See full story.

March 9: Gold, copper drop for second day over demand fears

Source: Marketwatch

New York -- Gold and copper finished mildly lower for a second day Tuesday as the U.S. dollar rose against the euro and amid concern that demand would slacken in China, the globe's biggest consumer of the industrial metal. Copper futures for May delivery fell 0.01% to $3.41 a pound on the New York Mercantile Exchange's Comex unit. Prices of the metal have surged more than 100% in the past year, while U.S. equities have advanced about 68% since the bottom of the bear market on March 9, 2009. Gold also declined for a second day, with the most-actively traded April contract off $1.7, or 0.2%, to $1,122.3 an ounce. The nearby March contract ended down $1.60, or 0.1%, at $1,122 an ounce on the Comex division of Nymex.

The recent strengthening of the dollar "as well as general profit-taking from a large run-up seem to be the first lines hitting gold," said Zachary Oxman, managing director at TrendMax Futures. Also, there seems to be a fear trade in the market, which may be weighing on gold, Oxman said in emailed comments. He expects the recent bout of selling to be short-lived. "I'd use these dips to accumulate a long-side trade," Oxman said. See full story.

March 8: Gold drops as dollar rises vs. yen, Greece gets vocal support

Source: Marketwatch

New York -- Gold futures finished lower on Monday, erasing gains seen in morning trade, as investor enthusiasm for the U.S. economy and aid to Greece faded, lifting the dollar while reducing the appeal of the precious metal. Gold for April delivery closed at $1,124 an ounce, down $11.20, or 1% at the New York Mercantile Exchange. It earlier rose as high as $1,138 and fell as low as $1,118.50 an ounce. The SPDR Gold Trust, the largest exchange-traded fund backed by the metal, fell 0.7%.

Among other metals, silver futures also came under pressure, but less so than gold. Silver for April delivery ended down 9 cents, or 0.6%, at $17.26 an ounce. "Silver remains the laggard and has underperformed gold in recent months," analysts at GoldCore said in a note. But "this has changed in recent weeks with silver again beginning to outperform gold," they said. See full story.

March 5: Gold futures end slightly higher after payrolls, Greek news

Source: Marketwatch

New York -- Gold futures ended with slight gains Friday, after earlier rising as much as 0.7% as better-than-expected U.S. jobs data boosted investors' willingness to move into riskier assets, including stocks and commodities. Gold for April delivery added $2.10, or 0.2%, to close at $1,135.20 an ounce. Gold prices also moved up on the week, compared to $1,118.90 an ounce last Friday. It's the third weekly gain in four for the precious metal.

In currencies, the dollar turned lower versus the euro after Greece's parliament approved proposed austerity measures. The SPDR Gold Trust, the largest exchange-traded fund backed by the metal, rose 0.3%. Helping set the trading tone, U.S. nonfarm payrolls dropped by 36,000 last month, fewer than economists projected. The nation's unemployment rate was unchanged at 9.7%; economists had been looking for an increase to 9.8%. See full story.

March 4: Gold down as dollar gains on U.S. data, ECB comments

Source: Marketwatch

New York -- Gold futures fell 0.9% on Thursday, pulling back from their highest level since mid-January, as the dollar gained on support from U.S. economic data and a European Central Bank official's approval of Greece's plan to fix its finances. That boosted the dollar and in turn detracted from gold's appeal as an alternative investment. Gold for April delivery declined $10.20 an ounce to $1,133.10. The euro slipped to $1.35566 from $1.3708 late on Wednesday.

The dollar gained after a report showed U.S. productivity gained and unit-labor costs fell, signaling slowing price pressures. Also weighing on the euro, ECB president Jean-Claude Trichet praised Greece's plan. See more on ECB, Greece. He seemed to indicate Greece wouldn't need help from the European Union and that soliciting help from the International Monetary Fund would be inappropriate. See full story.

March 3: Gold nears high of 2010 as dollar falls vs. euro

Source: Marketwatch

New York -- Gold futures rose Wednesday, nearing the highest levels of the year, as the U.S. dollar fell versus the euro, making the precious metal more attractive as an investment alternative. Gold for April delivery rose $5.90, or 0.5%, to $1,143.30 an ounce. It earlier rose as high as $1,145.80, the loftiest level seen since Jan. 11, when it closed at $1,151.40 an ounce, the high for 2010.

In foreign-exchange dealings, the dollar fell against the euro after Greece outlined further austerity measures to rein in its deficit. The euro climbed to $1.3720, up from $1.3608 in North American trading late Tuesday. Analysts also noted that SPDR Gold Trust, the largest exchange traded fund backed by the metal, posted inflows for the first time in two weeks on Tuesday. The fund said it raised its holdings by 4.6 tons to a total of 1,111.6 tons. "Alongside the currently robust jewelry demand from India and the high interest of speculative financial investors, ETF demand could also support the gold price in holding up against the firm U.S. dollar and in advancing toward the $1,200 an ounce mark," said analysts at Commerzbank. See full story.

March 2: Gold jumps to six-week high as euro gains on dollar

Source: Marketwatch

New York -- Gold futures rose 1.7% on Tuesday, touching their highest level in six weeks, as the euro gained on the U.S. dollar and added to the appeal of gold as an alternative investment. Gold for April delivery rose $19.10 to $1,137.4 an ounce. It earlier touched the highest on a closing basis since Jan. 19. The euro bought $1.3615, turning up by 0.3%, after earlier falling as low as $1.3434 after comments from a Greek official about the steps the country will need to take to decrease its deficit.

The dollar index, which measures the greenback against a trade-weighted basket of six major currencies, traded at 80.437, compared with 80.753 in late North American trading Monday. It fell versus the Japanese yen and Canadian dollar, which are both components of the index, as the Bank of Canada hinted at higher interest rates in the near future. Commerzbank analysts also noted that investors have added to bets that gold will rise. During the week of Feb. 23, they increased their net long positions to more than 146,000 contracts, the highest in four weeks, the firm said. See full story.

March 1: Soros signals gold bubble as Goldman predicts record

Source: Bloomberg

London -- George Soros is helping drive up gold prices by doubling his bet in a market even he considers a “bubble” as Goldman Sachs Group Inc., Barclays Capital and HSBC Holdings Plc predict more gains before it bursts. Soros Fund Management LLC, which manages about $25 billion, increased its investment in SPDR Gold Trust, the world’s largest exchange-traded fund for the metal, by 152 percent in the fourth quarter, a Feb. 16 Securities and Exchange Commission filing shows. While prices have fallen 9.2 percent since reaching a record on Dec. 3, 15 of 22 analysts in a Bloomberg survey say gold will reach a new high, with the median forecast predicting a 17 percent advance to as much as $1,300 an ounce this year.

“When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment,” Soros said at the World Economic Forum’s annual meeting in Davos, Switzerland, in January. “The ultimate asset bubble is gold,” he said. Gold’s fourfold rally since the end of 2000 has also attracted money managers John Paulson, Paul Tudor Jones and David Einhorn. Paulson’s Credit Opportunities Fund soared almost sixfold in 2007 by betting that subprime mortgages would plummet. Einhorn said in October that his Greenlight Capital Inc. bought gold to bet against the dollar. See full story.

February 26: Gold jumps as dollar declines after U.S. GDP data

Source: Marketwatch

New York -- Gold prices jumped to the highest price in a week on Friday, rising for a second day, as the U.S. dollar fell versus the euro and traders noted a sense of returning willingness among investors to buy riskier assets, including commodities. Gold futures for April delivery added $10.40, or 0.8%, to $1,118.90 an ounce, the highest since a week ago. It briefly rose as high as $1,119.50, back near the highest in a month.

"Gold has a split personality in a schizophrenic market," said Jay Feuerstein, a commodities trader and founder of 2100 Xenon. "Sometimes gold trades like a de facto currency and sometimes it participates in a flight to quality, and now it's battling between the two." Some investors may be buying gold as the weak data increases its investment appeal as a hard asset. But also, as stocks gain and the dollar falls, commodities may join other so-called risky assets as investors move away from safer positions, like in the dollar. See full story.

February 25: Gold bounces back from 2-week low

Source: Marketwatch

New York -- Gold futures ended higher for the first day in the past four on Thursday, after being in negative territory, as revived concerns about Greece's ability to address its financing problems boosted the U.S. dollar versus the euro. The greenback gave back some of those gains as the day wore on, helping gold turn higher as an alternative investment. Gold for April delivery ended $11.30 higher, or 0.01%, at $1,108.50 an ounce. The contract declined as low as $1,088.50 earlier in U.S. trading, the weakest since Feb. 10.

On Monday, benchmark gold closed at $1,122.10 an ounce, the highest since Jan. 19. Analysts also said buyers may have come in after the precious metal fell so quickly in recent days. "We expect dips to continue to draw investment support on inflation or deflation concerns and Greek downgrade or default worries, with gold holding in a broad band between $1,074 and $1,130," said analysts at Bullion Desk. See full story.