Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled 1% lower on Tuesday as a selloff for oil dampened investors� appetite for commodities overall and pushed inflation worries to the back burner at least for the day. Gold for June delivery declined $14.50, or 1%, to $1,453.60 an ounce on the Comex division of the New York Mercantile Exchange. It had traded as low as $1,445 an ounce. �The pullback in oil has helped undermine precious metals,� said Jim Steel, a commodities analyst with HSBC in New York. A 3% drop for oil muted inflation concerns, he said. In addition, several economists have slashed their forecasts for U.S. growth, which diminishes appetite for commodities as a whole, Steel said. Crude futures stumbled after weak U.S. trade data led to a rash of pessimistic views on U.S. economic growth and renewed doubts about oil demand.

Profit-taking that began on Monday also hit gold. The metal reached a string of record highs last week as the dollar tanked. Gold�s correction is likely to continue in the short term, analysts at Commerzbank said in a note to clients. �The medium- to long-term positive outlook is still intact, especially for gold,� they added. �Gold should remain in demand as a safe haven in any case and the price should be well supported. Speculators and jewelry traders are likely to see lower prices as an attractive buying opportunity.� See full story.