Daily Gold Update

Source: Marketwatch

San Francisco— Gold finished lower Tuesday after comments from Federal Reserve Chairman Ben Bernanke painted a grim picture for the U.S. economy and job growth, dulling the metal�s appeal as an inflation hedge, and as steep losses in global markets prompted investors to sell gold to raise cash. �Gold is waking up to two sobering facts: that a [third round of quantitative easing] is not on the way, and slower growth worldwide is deflationary and therefore bad for gold,� said Keith Springer, president of Springer Financial Advisors.

�Absent either of those, there�s little reason to own gold � except for a catastrophic hedge, which would be very short lived,� he said. Gold for December delivery lost $41.70, or 2.5%, to settle at $1,616 an ounce on the Comex division of the New York Mercantile Exchange. The contract had tallied a gain of $40.40 over the past two sessions. December gold had traded higher in electronic trading ahead of New York floor trade, to touch a high of $1,681.50 as euro-zone leaders delayed a decision on releasing further aid to Greece, setting off another day of nervous trading for global markets. See full story.