Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed modestly lower Monday, logging their fourth-consecutive finish below $1,600 an ounce after failing in their attempt to rebound from last week�s nearly 7% drop as strength in the U.S. dollar helped lure demand away from the metal. Prices had found support earlier from news of the death of North Korean leader Kim Jong-il, which helped buoy safe haven demand for gold, some analysts said. But European Central Bank President Mario Draghi on Monday warned on the economic outlook for euro-zone countries and downplayed the ECB�s role in tackling the debt crisis, contributing to weakness in U.S. stocks and dollar strength.

The precious metal�s contract for delivery in declined by $1.20, or 0.1%, to $1,596.70 an ounce on the Comex division of the New York Mercantile Exchange. It had climbed to a high of $1,611.50 earlier, though it also touched a low of $1,585.50. Prices haven�t closed above the $1,600 level since Dec. 13. �Market reaction to the news of Kim Jong-il�s death led the [gold] complex to a positive start,� said James Moore, analyst at TheBullionDesk.com, in a note. But the U.S. dollar gained some ground against major global currencies, helping to dull demand for gold as investors sought the safe haven of the greenback against a backdrop of a falling U.S. stock market. See full story.