Dollar the catalyst as buyers step following two sessions of losses By Myra P. Saefong, MarketWatch LONDON (MarketWatch) — Gold futures rallied early Thursday, with renewed weakness in the U.S. dollar setting the stage for metal traders to recoup some of the market’s two-session loss of more than $31 an ounce. Gold for December delivery rose $19.60 to $1,356.50 an ounce in electronic trading on Globex. The contract earlier tapped an intraday high of $1,358.20 an ounce. December gold settled at their lowest level in three weeks Wednesday in New York, having tallied a two-session loss of $31.60. See Wednesday’s metals story. Gold’s latest rise “is directly tied” to the lower dollar, said Darin Newsom, senior analyst at Telvent DTN. The dollar index (DXY 78.49, -0.60, -0.75%) , which measures the greenback against a basket of six major currencies, stood at 78.528, down from 79.099 late Wednesday. “Like most commodities, gold is at a key price point,” said Newsom. “If it were to stay under pressure, it would probably trigger a sharp selloff.” In Newsom’s view, “we will see this battle played out on many fronts as the [U.S. dollar index] tries to establish a long-term bullish technical signal,” he said. “If it succeeds, commodities could quickly break through this initial support.” The World Gold Council said Wednesday that total demand for the precious metal rose 12% in the third quarter compared to a year ago, to 922 metric tons. Demand for gold jewelry increased by 8%, with India, China, Russia and Turkey accounting for 63% of global demand. Other metals futures also posted gains on Thursday. Silver for December delivery rallied 96 cents, or nearly 4%, to trade at $26.47 an ounce. Copper futures advanced 7 cents to $3.80 a pound.

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