By Polya Lesova, MarketWatch NEW YORK (MarketWatch) -- Gold futures rallied above $835 an ounce Thursday, gaining from sharp weakness in the U.S. dollar and surging oil prices. Gold for February delivery gained $14.20, or 1.7%, to $822.90 an ounce in electronic trading on Globex. Earlier, the contract soared to an intraday high of $835.30 an ounce. "A weaker dollar and firmer crude prices is helping sentiment, as is news that an interim loan for the car companies was passed last night by a slim margin in the House," said Edward Meir, an analyst at MF Global, in a note. "Despite the better tone we are seeing in metals, more robust and sustainable moves to the upside will be hard to justify," Meir said. "With practically all countries exhibiting markedly lower growth rates or no growth, the demand component has been seriously compromised." Oil futures extended their rally on rising expectations that the Organization of Petroleum Exporting Countries will cut production at its meeting next week. Gold tends to benefit from rising oil prices, because they enhance the metal's appeal as a hedge against inflation. See Futures Movers. On Capitol Hill, the U.S. House of Representatives approved a $14 billion federal loan package for the struggling Big Three automakers on a 231-170 vote late Wednesday, overcoming opposition of some Republicans but sending the bill to an uncertain fate in the Senate. Read more. On Wall Street, U.S. stocks fell amid ongoing concerns about a bailout for the U.S. auto industry. See Market Snapshot. Dollar falls The U.S. dollar fell sharply against other major currencies Thursday, as a surge in jobless claims and other negative economic data put the greenback under heavy selling pressure. The Labor Department reported that the number of first-time filings for state unemployment benefits jumped by 58,000 to a 26-year high of 573,000 last week. See Economic Report. The U.S. dollar index , a measure of the greenback against a trade-weighted basket of six currencies, fell 0.7% to 84.10. See Currencies. Sharp weakness in the U.S. dollar typically boosts dollar-denominated commodities such as gold. "The notion of broadening dollar weakness is explicitly reflected in gold's rally past the $825 mark, which is the first five-day winning streak since September," said Ashraf Laidi, chief market strategist at CMC Markets. "We have long argued that in order for gold to mount a more credible rally beyond $850, downside U.S. risks must be a stand-alone phenomenon, not joined by negative news in Europe and Asia," Laidi said. Also on Globex Thursday, March silver futures rose 20 cents, or 2%, to $10.40 an ounce and January platinum futures gained $1.40 to $841.40 an ounce. March palladium futures fell $3.80, or 2%, to $181.95 an ounce, while March copper futures gained 1 cent at $1.51 a pound. The Reuters/Jefferies CRB In , a benchmark gauging the prices of major commodities, rose 1.7% to 225.12 points. On the equities side, the Amex Gold Bugs Index ) , which tracks the share prices of major gold companies, rose 3.6%. The SPDR Gold Trust , the largest gold exchange-traded fund, gained 1.8%.

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