Daily Gold Update

Source: Marketwatch

New York— Gold futures fell Wednesday as flight-to-quality buying slowed, but trimmed losses later in the day and came tantalizingly close to notch yet another winning session. Gold for August delivery, the most active contract, retreated $4.30, or 0.4%, to $1,222.60 an ounce on the Comex division of the New York Mercantile Exchange. A stronger dollar and a rising stock markets put a lid on any advances.

But the fact that gold is only moderately off following strong stock gains shows that bullion has not lost its safe-haven appeal amid "geopolitical and economic unrest anywhere you look," RBC Capital Market's George Gero said in e-mailed comments. The International Monetary Fund sold 14.4 metric tons (15.8 short tons) of gold in April, bringing the funds' gold sales to 38.5 metric tons so far this year. China's official Xinhua news agency reported Wednesday Iran's central bank has announced the sale of 45 billion euros from its foreign-exchange reserves to buy dollars and gold. The sales are "showing the world gold is a haven along [with] the dollar as gold is freely convertible, liquid and portable," Gero said. See full story.