Daily Gold Update

Source: Marketwatch

New York— Gold futures fell 2% Wednesday to their lowest level in two months, pacing losses in other commodities as slumping oil prices reduced the metal's appeal as a hedge against inflation. Crude fell for a sixth straight session Wednesday, marking the longest losing streak since December after the U.S. regulator said Tuesday it will hold a series of hearings this summer on whether to limit investor positions in commodities futures markets. On the Comex division of the New York Mercantile Exchange, August gold lost $19.40, or 2.1%, to $909.70 an ounce. It fell to $907.60 earlier — the lowest intraday level for a front-month contract since May 6.

"Neither firmer U.S. dollar, the weakening oil price nor the currently stagnating investment demand provide any support for gold," analysts led by Barbara Lambrecht at Commerzbank wrote in a note. India, the biggest gold consumer, this week doubled import taxes on gold and silver as the government sought to raise funds. Analysts said the move could further curb the country's gold imports and pressure gold prices. See full story.