Gold Rises But Can't Stay Above $1,000

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Gold closed at a fresh 18-month high but could not hold above $1,000 an ounce. The metal was boosted by a weaker U.S. dollar as well as higher oil prices.

December gold rallied to $997.90 per ounce, up $3 on the session. Prices reached as high as $1,009.70 earlier in the day, topping $1,000 for the first time since late February.

The rise took the precious metal close to some landmark numbers. Gold posted a record high of $1,033.90 and a record-best close of $1,003.20 in March 2008.

On Tuesday, the dollar plunged to its lowest level of this year against the euro, falling below 1.4500. The greenback saw weakness against the pound, yen and others.

Traders considered comments from former Federal Reserve Bank Chairman Alan Greenspan, who said Monday that banks in the U.S. need to hold more capital on their balance sheets and that the liquidity infused into financial systems by the world's central banks poses an inflation threat.

Plenty of speeches will attract attention on Wednesday. President Obama will address joint session of Congress on health care reform.

At 8 a.m. ET, Chicago Federal Reserve Bank President Charles Evans will deliver a speech in New York, while Dallas Federal Reserve Bank President Richard Fisher is scheduled to speak in Dallas at 1:30 p.m ET.

The Fed's Beige Book is expected to be released at 2 p.m. ET.

Light sweet crude oil for October delivery rose to $71.10 per barrel, up $3.08 on the session. Prices hit as high as $71.95.

(Market News Provided by RTTNews)