Daily Gold Update

Source: Marketwatch

New York— Gold futures extended losses on Wednesday after a pair of government reports showed that U.S. consumer prices rose 0.1% during November and that manufacturing in the New York region improved this month. Gold for February delivery fell $16.90, or 1.2%, to $1,387.30 an ounce. It briefly fell as low as $1,383.70 an ounce, a reversal after having ended the previous New York trading session with a gain of $6.30 to stand at $1,404.30. See Tuesday�s metals column. Gold came under pressure in the Asian trading session overnight, as the Federal Reserve�s decision to stand pat on U.S. interest rates and to affirm the size of its bond-purchase program at $600 billion dulled investment demand for the precious metal.

Also Wednesday, Moody�s Investors Service put Spain�s Aa1 rating under review for a possible downgrade, but this failed to lend support to gold prices. Read more about Moody�s review of Spain�s rating. �Markets were expecting Federal Reserve to announce some more bond purchases which did not happen,� said Chintan Karnani, chief analyst at Insignia Consultants in New Delhi. �As a result there was profit taking in gold.� See full story.