NEW YORK (MarketWatch) -- Gold futures rose for a third session early Wednesday, as oil prices rallied more than 4%, boosting the metal's appeal as a hedge against inflation. Other metal futures also posted strong gains. Gold for February delivery surged $29, or 4%, to $803.20 an ounce in electronic trading on Globex. Earlier, the contract hit an intraday high of $808.70 an ounce. "The bounce in oil prices is likely lending support, as is continuing robust physical demand internationally," said Mark O'Byrne, executive director of Gold & Silver Investments Ltd. Gold gained $4.90 Tuesday to end at $774.20 an ounce on the New York Mercantile Exchange. Oil futures rallied more than 4% Wednesday ahead of data on U.S. petroleum inventories due later this morning. Crude oil for January delivery rose $1.88, or 4.4%, to $43.94 a barrel in electronic trading on Globex. See Futures Movers. In the currency markets, the U.S. dollar fell versus major rivals Wednesday, weighed down slightly by progress toward a $15 billion federal bailout for the nation's auto industry. The dollar index a measure of the greenback against a trade-weighted basket of six currencies, fell 0.3% to 85.53 in recent trade. On Wall Street, U.S. stock-index futures pointed to a higher opening, as progress toward a bailout program for troubled automakers boosted investor sentiment. Mining giant Rio Tinto Wednesday announced a slew of measures reflecting an urgent shift in its priorities toward conserving cash and lowering costs. Citing the "unprecedented rapidity and severity of the global economic downturn," the Anglo-Australian company said it will slash as many as 14,000 job roles globally, including 8,500 contractors and 5,500 employee roles. Also on Globex Wednesday, March silver futures rose 28 cents, or 3%, to $10.14 an ounce and January platinum futures gained $22.50, or 3%, to $835 an ounce. March palladium futures gained $2.50, or 1.4%, to $182 an ounce and March copper futures rose 3 cents, or 2%, to $1.48 a pound.

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