Daily Gold Update

Source: Marketwatch

New York— Gold futures retreated Monday to the lowest level in nearly six weeks, as falling oil prices and a stronger dollar reduced the precious metal's appeal as a hedge against inflation and a weaker currency. Crude oil slumped nearly 4% to the lowest level in two weeks, after the World Bank predicted that the global economy will shrink 2.9% this year, a steeper fall than the 1.7% contraction it predicted in March. On the Comex division of the New York Mercantile Exchange, gold for August delivery fell $15.80, or 1.7%, to $920.40 an ounce. The June contract fell as low as $919, the weakest level since May 13.

The metal ended last week's trading down for a third straight week, the longest losing streak in two months. "Uncertainty brings out fund sellers looking at lower crude," said George Gero, a precious-metals trader for RBC Capital Markets. "Next support area could be $915 with resistance at $950 again." See full story.