Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures on Tuesday tallied a loss of more than $36 an ounce during a three-session losing streak that brought prices to their lowest level since mid June. The metal followed a decline in oil prices and saw pressure from U.S. dollar strength, which eased demand for the precious metal. But gold prices moved higher in electronic trading on Globex after the U.S. Federal Reserve kept interest rates unchanged at 2% and gave no sign that it plans to change policy in the foreseeable future.

For now, "the dollar has and continues to be the main influence on the gold price, so when today it pushed back to the upper limit of its trading range, it influenced the gold price to the downside again," said Julian Phillips, an analyst at GoldForecaster.com, ahead of the Fed announcement. "The factors pushing the price down are not in … substantive enough to change the trend of the gold price," he said in emailed comments. "Only a sound dollar, healthy global economic growth, low inflation, confidence in the world monetary system will change this trend, but then this is the sort of thing dreams are made of." See full story.