Daily Gold Update

Source: Bloomberg

New York— Gold fell from a two-month high as the dollar rose, cutting demand for the precious metal as an alternative investment. Silver declined. The U.S. Dollar Index, a six-currency gauge of the greenback�s value, advanced after a government report showed the number of U.S. workers making initial claims for jobless benefits fell more than economists estimated, a sign that some employers have stopped trimming jobs as the recession ebbs. Bullion typically falls when the dollar strengthens. �The firmer dollar is putting slight pressure on gold,� said Ralph Preston, a Heritage West Futures Inc. analyst in San Diego. �Gold�s direction will be all about the dollar and where it goes from here.

Gold futures for December delivery slid $3.40, or 0.4 percent, to $962.90 an ounce on the New York Mercantile Exchange�s Comex division. Earlier, the most-active contract reached $974.30, the highest since June 5. Silver for September delivery dropped 11.5 cents, or 0.8 percent, to $14.645 in New York. Earlier, the metal surged to $15.035, the highest since June 12. �Gold is bullish, and only a close under $945 an ounce hints at a turn to lower prices,� Preston said. �A close over $970 should accelerate rallies� and prices may reach $993, he said. See full story.