Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled at their lowest level in six weeks on Friday as investors abandoned commodities and placed their bets elsewhere. Gold for August delivery declined $20.20, or 1.3%, to $1,482.60 an ounce on the Comex division of New York Mercantile Exchange, bringing weekly losses to 1.2%. That was also gold�s lowest settlement since May 17, when it closed at $1,480 an ounce. �It�s really in line with the overall commodity decline,� said Jim Steel, a metals analyst with HSBC in New York. Drops for grains and oil were pronounced, spurring a general exit from commodities, he said. U.S. stocks rallied Friday on a surprise increase for a gauge of manufacturing activity.

Gold futures had declined this week after some uncertainty about the euro zone�s debt problems lifted, stanching some of the safe-haven flow to the metal. Greece approved an austerity plan and laws designed to implement it this week, straightening out the path for more financial aid to avoid a default. European leaders could approve a second bailout for Greece as early as Saturday, when euro-zone finance ministers have scheduled a video conference. See full story.