Gold News & Info

Source: MarketWatch

New York— Gold futures declined Thursday amid a slump in crude-oil prices, as the U.S. dollar rose against a basket of major rivals, reducing gold's appeal as an alternative investment. Gold for December delivery erased earlier gains, falling $15.50, or 2.1%, to end at $738.50 an ounce on the Comex division of the New York Mercantile Exchange. In energy trading, crude-oil futures fell from an intraday high above $70 a barrel to below $65 a barrel. Lower oil prices reduce demand for gold as a hedge against inflation. Read Futures Movers.

The U.S. dollar also changed course, erasing earlier losses and rising against the euro and the British pound. The dollar index, which tracks the value of the greenback against a basket of other major currencies, rose 1.2%. Dollar-denominated gold prices often move in the opposite direction of the greenback. Gold closed up nearly 2% Wednesday. In earlier trade Thursday, the benchmark contract had risen to $778.30, the highest since Oct. 21, on speculation that global interest-rate cuts will spur inflation. See full story.