Daily Gold Update

Source: Bloomberg

New York— Gold and silver futures fell as a rebound in U.S. equities eroded demand for precious metals as alternative investments. The Standard & Poor�s 500 Index advanced as much as 1.6 percent and the 30-stock Dow Jones Industrial Average rose as much as 1.2 percent, after dropping earlier. Stocks rallied after Treasury Secretary Timothy Geithner said the �vast majority� of U.S. banks have more capital than needed. Some investors buy gold as an alternative to holding company shares.

�Gold�s price is very sensitive to the U.S. equity market�s trajectory,� said Bayram Dincer, a Dresdner Bank commodity analyst in Zurich. �We expect this correlation to exist in the short term.� Gold futures for June delivery slid $4.80, or 0.5 percent, to $882.70 an ounce on the Comex division of the New York Mercantile Exchange. Earlier, the price jumped 1 percent to $896.40, the highest since April 15. See full story.