Gold News & Info

Source: Marketwatch

San Francisco— Gold futures dropped modestly Wednesday as a record-low pace of inflation in a U.S. economic report and the dollar coming off its lows took some wind out of the metal�s sails. Gold for December delivery declined $4.60, or 0.3%, to settle at $1,373 an ounce on the Comex division of the New York Mercantile Exchange. The lower settlement followed two days of gains for gold. Silver futures tracked gold lower, but other metals such as copper and platinum rose.

Earlier, investors contended with news that year-over-year core inflation rose by a record low of 0.9% in October, the lowest since the government started keeping records. Gold is often bought as a hedge against inflation and so-called currency debasement. �There�s no inflation whatsoever,� said James Cordier, portfolio manager at Optionsellers.com in Florida. �There�s one less reason to buy gold.� Concerns about Europe�s sovereign debt remain, but the U.S. dollar trading stronger against the euro was the bigger story for gold in the pre-Thanksgiving session, he added. See full story.