Gold Gains Most in Three Months

Gold rises to best daily performance in three months

Gold posted a 2 percent gain on Monday, the best daily increase in gold prices in three months, as a weak dollar helped drive gold prices up.

Oil moving up in price was also attributed to gold responding in such a strong fashion.

The last time gold moved up this much in a day was on November 3.

April delivery for gold futures rose by $21.20 to $1,105 an ounce on the Comex division of the New York Mercantile Exchange, equal to the 2 percent increase mentioned.

With inflation expected to pick up in 2010, it's sure gold will continue on its upwards price trend, even though the U.S. dollar has recently strengthened. While the dollar is expected to resume that performance on a temporary basis, it's unlikely to continue for a long period of time, and gold will again be the focus for investors looking for safety and an inflation hedge.

There should be some price swings in gold based upon these two scenarios playing out over the months.

Gold rises to best daily performance in three months