Gold futures rising sharply (MarketWatch) (28-02-2008)

NEW YORK (MarketWatch) -- Gold futures surged on Wednesday, reaching a record $967.70 an ounce, as the euro jumped to a new high against the U.S. dollar.

Gold for April delivery rose $12.10, or 1.3%, to end at $961.0 an ounce on the New York Mercantile Exchange. Earlier, the contract hit a record $967.70 an ounce.

Weakness in the U.S. dollar boosted gold's investment appeal. Gold, like many commodities, is denominated in dollars, and a lower U.S. currency makes it more affordable in other currencies.

The dollar was battered across the board, falling to a new record low of $1.5133 against the euro after downbeat durable-goods data and hints from U.S. Federal Reserve Chairman Ben Bernanke that more interest rate cuts are on the way.

According to Nymex data, gold warehouse inventories were down by 129,965 troy ounces to stand at 7.1 million troy ounces. Silver stockpiles rose by 598,984 troy ounces to stand at 134.8 million troy ounces, while copper supplies fell by 338 short tons to stand at 13,551 short tons. The Amex Gold Bugs Index  surged 2.1% at 485.90 points.

As for the sector's exchange-traded funds, the StreetTracks Gold Trust ETF gained 1.1% at $94.78, the iShares Silver Trust ETF rose 2.9% at $191.33 and the Market Vectors-Gold Miners ETF  gained 2.2% at $53.16.

 Source: MarketWatch