Daily Gold Update

Source: Marketwatch

New York— Gold futures fell Wednesday for a second straight session as the dollar hit a two-month high against the yen on worries over Japan's fiscal outlook, reducing gold's appeal as a hedge against a weaker greenback. Also pushing gold lower, data showed more businesses in the Chicago region were expanding in December than at any time in the past 16 months. The data, following Tuesday's upbeat report on consumer confidence, further raised hopes for an economic recovery hopes and reduced gold's investment appeal.

Gold for February delivery slid $5.60, or 0.5%, to $1,092.50 an ounce on the Comex division of the New York Mercantile Exchange. "We would look for gold and the rest of the precious metals to track the movements of the dollar," said James Moore, an analyst at TheBullionDesk.com "Given the recovery in the dollar, we would not rule out a deeper pull-back to the $1,050 level." See full story.