Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures dropped more than $5 an ounce Wednesday to log a second day of losses, with the U.S. dollar finding support after Federal Reserve Chairman Ben Bernanke acknowledged slow U.S. economic growth but made no reference to any further stimulus package. The U.S. dollar index rally likely contributing to a lack of buying interest for gold. The gauge, which tracks the performance of the greenback against a basket of other major currencies, was lately at 73.873, up from 73.528 late Tuesday. Read more about currencies action.

�Gold prices were largely governed by the movements in the dollar,� said analysts at ICICI Bank, in a note to clients. The comments from Bernanke supported the greenback, �thereby leading to a decline in prices of the yellow metal.� Gold for August delivery, the most active contract, fell $5.30, or 0.3%, to settle at $1,538.70 an ounce on the Comex division of the New York Mercantile Exchange. Silver for July delivery dropped 43 cents, or 1.2%, to finish at $36.62 an ounce. See full story.