Daily Gold Update

Source: MarketWatch

New York— Gold futures fell for a third day on Wednesday, as sliding crude-oil prices reduced demand for the precious metal as a haven against inflation and as a strengthening dollar diminished gold's appeal as an alternative investment. Gold for December delivery fell $2.3, or 0.3%, to end at $808.20 an ounce on the New York Mercantile Exchange. The dollar hit the highest level in more than seven months against the euro. Crude oil fell for a fifth straight day, dropping to as low as $107.32 a barrel.

Crude oil fell as Hurricane Gustav caused no significant damage to oil facilities in the Gulf of Mexico, where about a quarter of U.S. domestic oil is produced. Falling crude prices tend to ease inflation concerns and reduce demand for gold as a hedge against rising prices. Gold slumped nearly $25 Tuesday amid a broad sell-off in commodities. Ospraie Management LP said Tuesday it's shutting its flagship commodity hedge fund after it lost almost 40% this year. See full story.