Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed marginally higher on Wednesday in choppy trade, pulled in both directions by escalating jitters about Greece and the dollar�s renewed strength. Gold for August delivery settled up $1.80, or 0.1%, to $1,526.20 an ounce on the Comex division of the New York Mercantile Exchange. The U.S. dollar was higher against a basket of currencies including the euro. The U.S. dollar index /quotes/zigman/1652083 DXY +1.60% rose to 75.531 from 74.354 late Tuesday. Reports that the Greek opposition had asked Prime Minister George Papandreou to resign to make way for a new head of government sparked strong demand for the greenback, as an alternative to the uncertainty surrounding the euro.

Gold is seen by many as a safe haven during volatile times. �If you�re going to hide and stick your head in the sand, gold is the place,� said Richard Ross, global technical strategist at Auerbach Grayson. �But people shouldn�t have a false sense of security; at the end of the day, it is still a risky asset.� At the same time, since gold is priced in dollars, it often moves inversely to the greenback. �Gold is fighting some conflicting forces, and that has it stuck in a range for the time being,� according to Frank Lesh, a futures analyst with FuturePath Trading. Silver for July delivery settled unchanged on the day at $35.47 an ounce. See full story.