Daily Gold Update

Source: Bloomberg

New York— Gold futures fell to a three-month low in New York as the dollar�s rally reduced demand for the precious metal as an alternative investment. The euro fell to an eight-month low against the greenback on mounting budget concerns in countries such as Greece, Spain and Portugal. Gold capped a fourth straight weekly loss and the ninth decline in the past 10 weeks. "The dollar just keeps gaining momentum,� said Tom Schweer, a senior market strategist at LaSalle Futures Group Inc. in Chicago. �Gold could fall another $20 to $40 before people start to load up again.�

Gold futures for April delivery fell $10.20, or 1 percent, to $1,052.80 an ounce on the New York Mercantile Exchange�s Comex unit. Earlier, the most-active contract touched $1,044.50, the lowest price since Nov. 2. The metal declined 2.9 percent this week, paring its gain to 15 percent in the past 12 months. Bullion may fall to $800 before rebounding to a record when investors realize the U.S. government has exhausted tools to revive the economy, said Tom Winmill, a New-York based portfolio manager of the Midas Fund. In December, he predicted gold may average $1,500 in the fourth quarter of 2010. See full story.