Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures edged lower Tuesday with strength in the U.S. dollar prompting the metal to give back some of the previous session�s gains as traders awaited a vote in Slovakia on changes to the euro zone�s rescue fund. Gold for December delivery fell $4.70, or 0.3%, to $1,666.10 an ounce on the Comex division of the New York Mercantile Exchange. Prices traded between a low of $1,655.40 and a high of $1,686.70. �The yellow metal continues to move with the ebb and flow of hope that a real solution to the European debt/banking crisis will be forthcoming,� said Peter Grant, senior metals analyst at USAGold-Centennial Precious Metals Inc. �Reports that the troika will likely be releasing the next tranche of bailout funds lifted the euro, and tempered some of gold�s recent safe-haven bid in earlier trading.,� he said in emailed comments.

But European Central Bank President Jean-Claude Trichet�s �grim acknowledgment of the mounting systemic risks and worries� about the impending European bailout fund vote in Slovakia served to limit the downside,� he said. Trichet on Tuesday, speaking in his capacity as head of the European Systemic Risk Board, told the European Parliament that the euro-zone crisis �has reached a systemic dimension.� He called on officials to quickly implement the package of measures agreed at the July 21 summit, which includes a revamp of the 440 billion euro ($600 billion) European Financial Stability Facility. See full story.