Daily Gold Update

Source:Marketwatch

New York— Gold futures edged lower Thursday as fear-buying slowed to a trickle, but most investors weren't ready to embrace a rosy outlook. Gold for August delivery, the most active contract, lost 90 cents, or 0.1%, to $1,214.40 an ounce on the Comex division of the New York Mercantile Exchange. The front-month June contract retreated $1.50, or 0.1%, to $1,211.90 an ounce. Investors were of two minds about gold a day after bullion closed above $1,200 an ounce for the first time in a week.

Some still sought out protection against currency and inflation concerns, but safe-haven buying slowed to a trickle as China denied reports that it was preparing to diversify its reserve holdings of euro-zone bonds. Beijing's categorical denial that it was unloading euro-zone debt "took a lot of fear off the table," said James Cordier, portfolio manager with OptionSellers.com in Tampa. The denial "took out the fear of complete capitulation. … The Chinese gave (the euro) a little breather," said Adam Klopfenstein, trader and market strategist with Lind-Waldock in Chicago. In currencies, the euro recovered from Wednesday's bout of selling, rising back to $1.23. The dollar index /quotes/comstock/11j!i:dxy0 (DXY 86.33, -0.79, -0.90%) fell 1% to 86.29 from 87.159 in late North American trading on Wednesday. See full story.