Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures dropped Friday as strength in the U.S. dollar dulled investment demand and fears of inflation diminished with crude futures under $100 a barrel. Gold for August delivery fell $13.50, or 0.9%, to settle at $1,529.20 an ounce on the Comex division of the New York Mercantile. That was gold�s lowest closing since May 26. Gold futures declined 0.9% this week. Silver tracked gold lower, with the July contract losing $1.10, or 2.9%, to $36.33 an ounce. On the week, silver gained 0.4%. �Commodities in general are getting whacked by the stronger U.S. dollar index,� said Darin Newsom, a senior analyst at Telvent DTN.

Investors who bought gold on inflationary fears earlier this week, when energy prices spiked, were selling off Friday as oil futures and equities went south, said Adam Klopfenstein, a senior market strategist with Lind Waldock in Chicago. �That fear of inflation subsided. With oil back below $100, that inflationary thesis is off the table� at least for now, he said. Gold futures were holding their own, however, as the lower prices worked to entice some bargain hunters back to the market, Klopfenstein said. See full story.