Daily Gold Update

Source: Marketwatch

New York— Gold futures fell for a second day on Friday, as the dollar rose to its highest level against a basket of other major currencies in seven weeks, reducing the appeal of gold as an alternative investment. Gold for February delivery closed down $6, or 0.8%, at $798.0 an ounce on the New York Mercantile Exchange. Earlier, the contract hit an intraday low of $792.30 an ounce in electronic trading. In overnight electronic trading, however, gold rose to an intraday high of $808.50 an ounce.

"Gold prices have lost earlier gains and are down on the day as the dollar strengthens," said analysts at Action Economics in a research note. "A stronger U.S. dollar makes gold more expensive for foreign investors and also reduces the appeal of gold as a hedge against inflation." See full story.