Daily Gold Update

Source: Marketwatch

New York— Gold futures ended lower Wednesday, after swerving in and out negative territory for most of the session, with investors taking cues from currencies. Gold for August delivery retreated $6.50, or 0.5%, to settle at $1,207 an ounce on the Comex division of the New York Mercantile Exchange. Silver held onto gains.

Traders followed the strengthening euro, and some analysts blamed gold's dips into the red on the unwinding of the gold-euro trade. The dollar index, which compares the U.S. unit to a basket of six currencies, fell 0.3% to 83.38. The euro strengthened throughout the day, and posted a two-month high earlier in the session. One euro most recently changed hands at $1.27. The pullback was a result of "the unwinding of the euro-gold spread," as investors who bought gold in euros are now selling to cut losses from the stronger European currency, said Stephen Platt, an analyst with Archer Financial Services in Chicago. See full story.