Daily Gold Update

Source: Marketwatch

New York— Gold futures fell for a second day on Tuesday, retreating from near a one-month high, as the U.S. dollar gained on weak economic data and reduced the appeal of the precious metal as an alternative investment. Gold for April delivery declined $9.90, or 0.9%, to $1,103.20 an ounce. The dollar climbed higher, keeping gold lower, after the U.S. Conference Board said its index on consumer confidence dropped much more than expected this month.

The dollar index, which measures the U.S. unit against a trade-weighted basket of six major currencies, rose to a new 8-month high and recently traded at 80.842, up from 80.513 in late North American trading Monday. U.S. stocks dropped, with the Standard & Poor's 500 Index losing 1.2%. The precious metal showed little reaction to the S&P/Case-Shiller home-price index, which showed prices in U.S. cities fell 0.2% in December. A business-sentiment survey in Germany and comments from a Bank of England official also damped speculation that economic recovery would fuel inflation, which would also make gold a more attractive investment. See full story.