Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures extended their fall Tuesday in the aftermath of Standard & Poor�s warning of possible credit-rating downgrades on 15 euro-zone nations. The metal trimmed losses as the session progressed and the U.S. dollar lost ground, however. Gold for February delivery shed $2.70, or 0.2%, to settle at $1,731.80 an ounce on the Comex division of the New York Mercantile Exchange. Gold traded as low as $1,705.70 an ounce earlier.

The metal is approaching the end of the year with yearly gains above 21%, however. The concerns about the potential euro-zone downgrades �continued to cause liquidation in the gold market,� said Jim Steel, a precious metals analyst with HSBC in New York. Other metals were damaged by concerns about a slowing economy, he added. Gold has lost much of its safe-haven appeal as the crisis in Europe deepened, moving alongside other assets whenever fearful investors turn to cash and other safe-haven investments such as U.S. bonds and the dollar. See full story.