Daily Gold Update

Source: Reuters

Tokyo— Gold dropped on Monday as the dollar recovered to a one-month high against the euro and uncertainties in financial markets intensified after sell-offs in Asian stock markets. President George W. Bush's plan to give the U.S. economy temporary tax cuts and other measures totalling about $150 billion failed to remove uncertainties in financial markets, which also made players reluctant to take new positions in gold. As of 0850 GMT, spot gold was at $873.50/874.20 an ounce, down from $881.90/882.60 in New York on Friday.

"Gold is pressured as the euro dropped against the dollar. The market is also reluctant to take new positions in gold due to uncertainties in financial markets, especially as stock prices were falling," said Shuji Sugata, manager at Mitsubishi Corp Futures and Securities in Tokyo. See full story.