Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed lower on Monday, as optimism about addressing the euro-zone sovereign debt crisis fueled gains in global stock markets and dulled investment demand for the precious metal. �Ideas of an improving economic situation in Europe could take some of the luster off gold investments as a �safe haven,�� said Darin Newsom, a senior analyst at Telvent DTN. �Gold is still technically weak and � seems to be losing investment interest to energies.� Gold for February delivery, the most active contract, fell $16.80, or 1%, to settle at $1,734.50 an ounce on the Comex division of the New York Mercantile Exchange. �Expect more sound and fury from Europe this week,� said Adrian Ash, head of research at BullionVault.com. But �it will signify nothing until the choice is made to default or devalue. Buying gold means preparing for either.�

Gold futures traded as low as $1,721.10 on Monday, though last week gained 3.9%, snapping a two-week losing streak. Over the weekend, Italy�s government announced new budgetary measures. On Monday in Paris, French President Nicolas Sarkozy and German Chancellor Angela Merkel said at a joint news conference that they would press for a new treaty to strengthen euro-zone fiscal rules in an effort to restore confidence in the shared currency. See full story.