Daily Gold Update

Source: Marketwatch

New York— Gold futures on Thursday fell to their lowest level since early May, upended after stronger U.S. retail sales for May bolstered demand for the dollar and tarnished the precious metal's allure as another asset option and hedge against inflation. "Gold is again taking its cue from oil, which is down, and the dollar, which is up," said Mark O'Byrne, executive director of Gold & Silver Investments Ltd. Off earlier lows, gold for August delivery got carried lower still, recently retreating $10.90 to end at $872.00 an ounce on the New York Mercantile Exchange. Another loser in Nymex metals dealings, July silver fell 70 cents to settle at $16.48 an ounce.

The Commerce Department reported an unexpected 1% rise in retail sales last month, marking the fastest increase in six months. The dollar gained strength in the belief that a rebound in retail sales would back the case for the Federal Reserve to hike U.S. interest rates, with the dollar index, which tracks the greenback against major currency rivals, gaining nearly 0.9% to 73.88. See full story.