Daily Gold Update

Source: Bloomberg

London— Gold fell in London as crude oil slumped and the dollar gained against the euro, reducing the metal�s appeal as an inflation hedge and alternative investment. Oil declined today on forecasts faltering global economic growth will drive down fuel demand, while the dollar rose as much as 1.2 percent against the euro. Bullion, which typically moves in the opposite direction to the U.S. currency, climbed 3.1 percent on Jan. 16, the biggest gain in more than a month. Gold is �still moving with oil and the dollar and it depends on what�s going on in these markets,� Wolfgang Wrzesniok- Rossbach, head of marketing and sales at Hanau, Germany-based Heraeus Metallhandels GmbH, said by phone. Trading volume will be low today because of the Martin Luther King Day holiday in the U.S., he said.

Gold for immediate delivery lost as much as $10.70, or 1.3 percent, to $832.45 an ounce and traded at $838.82 an ounce by 5:14 p.m. in London. February futures were 0.2 percent lower at $838.40 in electronic trading on the Comex division of the New York Mercantile Exchange. The metal rose to $842.50 an ounce in the morning �fixing� in London, used by some mining companies to sell production, from $833.75 at the afternoon fixing on Jan. 16. See full story.