Daily Gold Update

Source: Marketwatch

New York— Gold futures on Monday notched their worst one-day decline since mid-May, a reversal sure to delay gold's hopes of reaching the $1,300-an-ounce mark before the first half of the year is out. Other metals such as copper kept their gains, buoyed by news that China pledged to allow its currency to float more freely against the U.S. dollar. Gold for August delivery, the most active contract, declined $17.60, or 1.4%, to $1,240.70 an ounce on the Comex division of the New York Mercantile Exchange.

Gold lost 1.8% May 19, but lately had been collecting a string of modest losses when not outright posting gains for the day. Gold started the day swerving in and out positive territory, when China's currency move was viewed alternatively as neutral or negative for gold. "People got ahead of themselves," said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. "This is shaping up to be a key reversal" as investors seemed to be lightening up their long positions, or bet gold prices will go higher, he added.See full story.