Daily Gold Update

Source: Marketwatch

New York— Gold futures closed higher Tuesday as bargain hunters snapped up prices at two-month lows, with gains limited by increased investor focus on the risks of deflation. Gold for August delivery added $9.80, or 0.8%, to $1,191.70 an ounce on the Comex division of the New York Mercantile Exchange.

"There are still a lot of bottom-fishers in the market," said Frank Lesh, broker and analyst at FuturePath Trading in Chicago. Gold had ended below $1,182 an ounce on Monday, the weakest close for a most-active contract since May 21. Interest in gold had fallen in recent sessions alongside diminished concerns over debt problems in Europe, as underscored by Ireland's successful sale of government bonds Tuesday. Spain and Greece also auctioned off Treasury bills Tuesday, further bolstering investor confidence in European sovereigns. See full story.