Daily Gold Update

Source: Marketwatch

New York— Gold futures fell Wednesday, pressured by a stronger dollar and as investors were seen as sidelined. Gold for August delivery declined $6, or 0.5%, to $1,234.80 an ounce on the Comex division of the New York Mercantile Exchange. The contract ended the prior New York floor session with a 10-cent gain. The dollar shook off initial weakness to rise Wednesday, and gold resumed its traditional inverse correlation with the greenback, said Standard Bank analyst Walter de Wet.

As the dollar strengthens, bullion usually heads lower as the dollar appreciation makes gold more expensive for holders of other currencies — or so it had been until problems in Europe dominated the headlines. As concerns about Europe intensified, gold moves were more influenced by the euro and investors' risk appetite against the macroeconomic background. Also at play were the "summer doldrums" and Thursday's contract expiration date for most metals, said George Gero, an analyst with RBC Capital, in emailed comments. See full story.