Daily Gold Update

Source: Marketwatch

New York— Gold futures ended slightly lower on Wednesday, as gains in the U.S. dollar lowered investment demand for the precious metal. Gold for February delivery fell $2 to end at $805.40 an ounce on the New York Mercantile Exchange. On Tuesday, gold futures closed up $8.10, or 1%, at $807.40 an ounce.

The dollar extended earlier gains against the British pound and also rose against the euro, shrugging off a downturn in U.S. stocks following a warning from Standard & Poor's that it may downgrade ratings on bond insurers. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, gained 0.3% at 77.605. Gold, as a dollar-denominated commodity, suffers from dollar strength. "A firmer dollar appears to be capping [gold] gains," said analysts at Action Economics. "As year-end approaches, traders warn of either high volatility or very quiet markets as trade volume decreases." See full story.