Media Coverage

By Moming Zhou, MarketWatch
Last update: 2:10 p.m. EST Jan. 14, 2008

SAN FRANCISCO (MarketWatch) -- Gold futures rose for a fifth session on Monday and closed above $900 for the first time as the dollar fell against a basket of other major currencies, increasing attraction of the precious metal as an investment alternative.
Gold futures for February delivery ended up $5.7, or 0.6%, at $903.4 an ounce on the New York Mercantile Exchange. It surged to an all-time high of $915.9 an ounce earlier in electronic trading.
The dollar index, which tracks the value of the greenback against a basket of other major currencies, fell to as low as 75.36, the weakest in six weeks. Gold is denominated in dollars and tends to move up when the greenback falls.
"We are picking up where we left on Friday, with metals generally stronger on the back of a weaker dollar and a firmer precious-metals market," said Edward Meir, an analyst at futures brokerage MF Global. "Given the dearth of data coming out of the U.S. today, we expect to see the steady tone continue."
Gold topped $900 an ounce on Friday for the first time. It has risen more than $40 since last Monday's closing.
High crude-oil prices also helped gains in gold prices. February crude-oil futures rose for the first time in four days, up more than $1 a barrel.
"Along with the dollar weakness, the higher price for oil is also likely lifting gold today," said Frank Holmes, CEO and chief investment officer at gold funds management firm U.S. Global Investors. "Oil and gold trade in the same direction most of the time because they are indicators of inflationary pressures in the market."