Gold News & Info

Source: MarketWatch

New York— Gold futures fell Tuesday as slumping crude-oil prices reduced demand for gold as a hedge against inflation and as a strengthening dollar added downward pressure on dollar-denominated gold prices. Gold for December delivery lost $6.5, or 0.8%, to end at $780.50 an ounce on the Comex division of the New York Mercantile Exchange. After markets closed, the Federal Reserve said it decided to keep its key interest rate unchanged, further boosting the U.S. dollar and pushing down gold prices. In energy markets, the benchmark crude-oil futures contract slumped more than 5% Monday. It was trading down nearly 5% Tuesday. Falling crude prices tend to lead to gold price declines, as they ease inflation concerns.

Gold had risen more than $40 in the past two sessions, as demand for gold as a safe haven increased after failures in major Wall Street financial firms raised economic concerns. Earlier Tuesday economic worries pushed up gold prices to as high as $794 before the precious metal pulled back. "Gold's resilience is impressive considering the bloodbath seen in the oil pits," said Mark O'Byrne, executive direct at Gold and Silver Investment. See full story.