Daily Gold Update

Source: Bloomberg

New York— Gold fluctuated between gains and losses in New York, halting a five-session rally after touching a 12-week high, on speculation that a rising dollar will curb demand for the metal. The dollar rose as much as 0.6 percent against a basket of six major currencies, including the euro, before paring the gain. Some investors also sold after the metal surged to the highest price since January. �If you get a strong dollar, there are still traders out there who are going to sell gold,� said Frank Lesh, a trader at FuturePath Trading LLC in Chicago. �It�s a short-term trade.� Gold futures for June delivery fell 10 cents to $1,152.90 an ounce on the Comex. The most-active contract earlier touched $1,154.70, the highest price since Jan. 12, and fell as low as $1,144.40. The metal gained 4.3 percent in the previous five sessions.

Concerns that Greece may be unable to rein in widening budget deficits have dragged the euro down this year against the dollar. Before today, the 16-nation currency fell 6.8 percent against the greenback. Greek bonds dropped for a seventh day and swaps used to hedge against a default rose to a record. Gold traded in euros reached a record for a fourth straight day, touching 864.6381 euros before paring the gain. �People are buying gold because of the euro, but they�re also selling gold because of the dollar,� Lesh said. �The weak euro is now driving gold higher, which is totally the opposite of what we�ve had in the past, but it�s about a flight to safety in Europe now.� See full story.