Daily Gold Update

Source: Marketwatch

New York— Gold futures closed modestly lower Wednesday as a decline in oil prices and a stronger U.S. dollar helped ease demand for the precious metal. Gold for December delivery fell by 50 cents to close at $816.30 an ounce on the New York Mercantile Exchange. It recovered a bit from a low of $806.80 during the session, but continued its decline in electronic trading on Globex, where it traded at $815.80 as of 1:45 p.m. EDT. Gold prices climbed as high as $822.40 on Nymex earlier in the trading session.

"Gold, rebounding from oversold levels, rose for the second time" on Tuesday and the market made a new low during the trading session, but closed higher than the previous day's high, said Mark O'Byrne, a director at Gold and Silver Investments Ltd. "This is a short-term bullish indicator and often happens near market bottoms and could mean a trend reversal is developing…. The fundamentals remain very strong with geopolitical risk, deepening worries about the financial sector, poor economic data and soaring inflation and stagflation internationally leading to very significant physical demand internationally," he said in a note to clients. See full story.