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.

September 2: Gold posts two-month high, other metals follow suit

Source: Marketwatch

New York -- Gold futures on Thursday closed less than half a percentage point away from their record high, resuming their climb as investors continued to use the metal as a means of safeguarding wealth. Gold for December delivery added $5.30, or 0.4%, to $1,253.40 an ounce on the Comex division of the New York Mercantile Exchange. That's 0.4% away from the June 18 record high of $1,258.30 an ounce, and a fresh two-month high for the metal. Silver hit a multiyear high on Thursday, riding the coattails of gold, and copper settled at a four-month high after encouraging housing numbers.

"Gold is continuing its slow and steady advance," said Frank Lesh, a broker with FuturePath Trading in Chicago. "There's still a need for safety, for something that will maintain its value in these uncertain times." That gold has moved upward in an orderly fashion makes the recent rally even more important, Lesh said. "We tend to hold value when we do that." Gold gained 5% in August, making up for July's losses. It was off modestly Wednesday, but more nuanced macroeconomic reports Thursday gave it the push it needed to resume its climb. See full story.

September 1: Gold turns lower as economic data raise risk appetite

Source: Marketwatch

New York -- Gold futures shed earlier gains Wednesday, as stronger U.S. and Chinese manufacturing data quieted fears the global recovery was stalling, increasing investors' appetite for risk. Gold for December delivery settled down $2.20, or 0.2%, to $1,248.10 an ounce at the New York Mercantile Exchange. Earlier it had risen as high as $1,256.60 an ounce, within $2 of a record high settlement of $1,258.30 an ounce set in June. Gold had held to gains immediately after payroll processor ADP released its estimate for August employment, taking part in a broad rush to commodities including oil and copper.

But bullion -- which rallied in August as stocks and oil tanked -- reversed lower just ahead of the Institute for Supply Management's release of its August survey of manufacturers, as stocks surged at the open. Adam Klopfenstein, senior market strategist at Lind-Waldock, said Wednesday's positive economic indicators are removing a "flight to quality" effect, reducing the allure of gold as a safe haven. "With better-than-expected data coming out of ISM and China and the markets rallying, we're seeing light selling pressure as investors become more tolerant of risk," Klopfenstein said. See full story.

August 31: Gold, silver forge ahead, post solid monthly gains

Source: Marketwatch

New York -- Gold futures rose Tuesday, pushing August gains past 5%, and silver hit a three-month high as investors sought out both metals to protect against signs the economic recovery is faltering. Gold for December delivery added $11.10, or 0.9%, to $1,250.30 an ounce on the Comex division of the New York Mercantile Exchange. It closed less than 1% from bullion's record high of $1,258.30 an ounce on June 18.

Gold rallied 5.6% in August. That compares to a decrease of 5% in July and is gold's largest advance since April. Silver for December delivery added 36 cents, or 1.9%, to $19.43 an ounce. That's silver's highest close since mid-May. Silver has gained nearly 8% in August. Gold held onto gains earlier in the session after S&P's Case-Shiller home price index showed prices have risen over the past three months and moved up 4.2% in the past year. See full story.

August 30: Gold inches up, copper hits four-month high

Source: Marketwatch

New York -- Gold futures closed a choppy session Monday with a modest rise, supported by bargain hunting after four straight weeks of gains and by expectations of more weak economic data. Gold for December delivery added $1.3, or 0.1%, to $1,239.20 an ounce on the Comex division of the New York Mercantile Exchange. Gold had swerved in and out of positive territory earlier in the session. Silver closed at a two-month high and copper at a four-month high.

Investors are expecting further signs of a slowdown from economic data this week, including manufacturing and employment figures. Some are buying gold -- often viewed as a safe place to sock savings -- ahead of a possible confirmation of their fears. "Everything that has come up in the last couple of years has been pretty bad, at least as far as the United States is concerned," said Afshin Nabavi, head of metals trading at MKS Finance in Geneva. Investors expect this week's figures "not to be so great," he added. See full story.

August 27: Silver futures shine as gold loses steam

Source: Marketwatch

San Francisco -- Gold futures finished a roller-coaster Friday just a tad higher, ceding the spotlight to silver, which ended the week rising 5.5%. Gold for December delivery added 20 cents, or less than 0.1%, to $1,237.90 an ounce on the Comex division of the New York Mercantile Exchange. On the week, gold has gained 0.7%, notching a fourth consecutive weekly gain. So far this month, gold has gained 5%, already making up for losses of 5% in July.

Silver touched a multimonth high earlier but also lost some steam as floor trading drew to a close. Investors were mostly drawn to silver as a cheaper alternative to gold. Gold had gained about $4 an ounce before Federal Reserve Chairman Ben Bernanke's speech but dipped into the red afterward, alongside most markets. It reversed higher as the dollar came off the day's highs. Earlier Friday, Bernanke spoke at the annual Fed summer retreat in Wyoming. He said the government would resist deflation but didn't directly say whether the Fed would take new measures to combat the slower pace of the recovery. See full story.

August 26: Gold drops as investors embrace risk

Source: Marketwatch

New York -- Gold futures settled lower Thursday, as investors shifted to stocks, oil and other assets seen as riskier after a drop in U.S. jobless claims helped offset a recent rise in concerns about the economy. Gold for December delivery receded $3.60, or 0.3%, to $1,237.70 an ounce on the Comex division of the New York Mercantile Exchange. Copper rallied nearly 3%. Gold's pullback came after the metal hit a seven-week high on Wednesday, as fears of economic gloom supported gold and pushed silver to its best finish in eight weeks. Silver for December delivery, the most active contract, reversed lower on Thursday. The contract declined 5 cents, or 0.3%, to settle at $19.02 an ounce.

Gold has added about $75 in the past few weeks, and "with nothing really looming" to spur a flight to safety, it was only natural to expect that some investors would take money off the table, said James Cordier, a portfolio manager at OptionSellers.com in Florida. See full story.

August 25: Gold rises to seven-week high after data disappoint

Source: Marketwatch

New York -- Fears of economic gloom and doom helped gold rise to a seven-week high and silver post its best finish in eight weeks. Gold for December delivery added $7.90, or 0.6%, to $1,241.30 an ounce on the Comex division of the New York Mercantile Exchange. Silver for September delivery added 65 cents, or 3.5%, to $19.03 an ounce. Most metals tracked gold higher, with the exception of copper. The gains stemmed from government reports on Wednesday showing a weaker-than-expected rise in orders for durable goods and a record-low pace for sales of new homes. For silver, Wednesday's settlement was also the biggest one-day increase since June.

"It's trite to say it, but silver really is performing as the poor man's gold right now," said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. As gold broke through the $1,240-an-ounce mark, some investors started to migrate to much cheaper silver, he said. Nearly 40,000 silver contracts changed hands on Wednesday, whereas an average of about 25,000 is the norm, Nedoss added. Investors are also starting to roll into the December silver contract. That contract added 64 cents, or 3.5%, to $19.07 a pound. See full story.

August 24: Gold futures hold on to comeback;

Source: Marketwatch

San Francisco -- Gold futures rebounded Tuesday, posting gains after existing-home sales suffered their biggest one-month drop on record and investors sought the relative safety of the yellow metal. Gold for December delivery added $4.90, or 0.4%, to $1,233.40 an ounce on the Comex division of the New York Mercantile Exchange. Bullion snapped a two-session losing streak. Gold hit an intraday low of $1,211.70 earlier and spent most of its first hours of floor trading in the red. The metal had entered a "shallow correction," but flight-to-quality buyers returned, said Adam Klopfenstein, a senior market strategist with Lind-Waldock in Chicago.

Spurring the flight to safety, the National Association of Realtors reported that sales of existing homes in the U.S. plummeted 27.2% in July. Sales of single-family homes hit their lowest point in 15 years. That initially sent gold deeper into the red, along with most other asset classes, but investors eschewing risk were quick to resume buying gold. See full story.

August 23: Gold fluctuates as economic outlook slows commodities demand

Source: Bloomberg

New York -- Gold fluctuated in New York as concern that the economic recovery is faltering helped fuel investor interest in the precious metal as a protection of wealth. The Reuters/Jefferies CRB Index of 19 commodities is down 5.5 percent this year as the U.S. struggles to recover from the worst recession since the Great Depression. Gold futures climbed to a seven-week high of $1,239.50 an ounce on Aug. 19 and are 3 percent below a record.

“Gold will hold its bid, but it will start working sideways,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “There’s overall weakness in the markets on a slowing of the economy. You sell everything in this scenario, but the fear will come back and gold will catch a bid.” Gold futures for December delivery rose 30 cents to $1,228.50 an ounce at 10:21 a.m. on the Comex in New York. Prices swung between a gain of 0.4 percent and a 0.2 percent loss. Hedge-fund managers and other large speculators increased their net-long positions in New York gold futures, or bets prices will rise, by 7.1 percent in the week ended Aug. 17, according to U.S. Commodity Futures Trading Commission data. That’s the biggest increase since April. Gold has gained for three straight weeks. See full story.

August 20: Gold slips, but previous sessions ensure 1% weekly gain

Source: Marketwatch

New York -- Gold futures declined Friday on a rising dollar, but the misstep didn't dent the metal's weekly gain of 1%. Gold for December delivery retreated $6.60, or 0.5%, to $1,228.80 an ounce on the Comex division of the New York Mercantile Exchange. Strong gains earlier in the week guaranteed the rise, keeping investors' hopes that gold will continue to trend higher. Gold has risen in the past three weeks, including a rise of 1.6% in the previous week.

The stronger dollar was reason No. 1 for Friday's slide, said Michael K. Smith, with T & K Futures and Options Inc. in Florida. Volumes were also thin, he added. Charles Nedoss, a senior market strategist at with Olympus Futures in Chicago, also saw margin calls dampening gold's prospects. "People are trying to defend their equity positions," he said. See full story.