Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures inched lower, leaving behind their latest string of records, as the dollar rose and Thursday�s economic reports had a benign impact. Concerns about lack of a legislative resolution in the U.S. debt-ceiling standoff kept a floor under prices, however. Gold for December delivery, the most actively traded contract, declined $1.10, or 0.1%, to $1,616.20 an ounce on the Comex division of the New York Mercantile Exchange. The contract seesawed between mild gains and losses for most of floor trading.

�A lot of people are turning to the gold market … but some are now realizing (the debt ceiling debate) is probably a political farce� and lawmakers will agree on a deal, said Michael Smith, with T & K Futures and Options in Florida. Gold could lose ground if a bill to deal with U.S. debt and deficits is approved, but the �big picture� for gold is still supportive on fears of currency devaluation, Smith added. See full story.