Gold News & Info

Source: Marketwatch

San Francisco— Gold futures settled below the $1,500-mark Monday as the U.S. currency�s weakness and the U.S. debt limit vied for investors� attention. Gold prices had fallen earlier Monday as the dollar initially gained against the euro following news of the arrest of the head of the International Monetary Fund Dominique Strauss-Kahn. The precious metal then recovered to successfully test $1,500 per ounce as analysts said Strauss-Kahn�s arrest was unlikely to table talks on restructuring Greek debt, supporting the euro and driving the U.S. dollar lower.

But as the New York floor session ended, gold failed to defend its gains as investors increasingly focused on the impending U.S. debt ceiling issue. �If Congress reaches an agreement which cuts government spending in order to extend the debt limit, the economy will suffer. Stocks go down on that, and so do precious metals,� Jay Feuerstein, chief executive officer of 2100 Xenon Group, said in an email. Gold for June delivery lost $3, or 0.2%, to settle at $1,490.60 an ounce on the Comex division of the New York Mercantile Exchange. Silver prices also slid, with silver for July delivery shedding 88 cents, or 2.5%, to $34.13 an ounce. See full story.