Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures on Tuesday retreated to their lowest settlement in nearly three months, with the precious metal unable to build on a small advance made in the previous session and pressured by a rising dollar. Gold for February delivery lost $12.20, or 0.9%, to end the day at $1,332.30 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s lowest settlement since Oct. 27, when the metal closed at $1,322.60 an ounce. The drop more than gave back a $3.50 advance made Monday when inflation fears were stoked by European Central Bank President Jean-Claude Trichet.

�Money is being put to work in the equity markets right now,� said Charles Nedoss, a senior market strategist at Olympus Futures in Chicago. Long term, however, Nedoss said he�s still positive about gold. �The equity market is a little ahead of itself, jobs are still a big issue, the housing market is still very soft and vulnerable,� which would push gold back to its safe-haven status, he said. See full story.