Gold News & Info

Source: Marketwatch

New York— Gold futures dropped Monday to their lowest level in two weeks as tumbling oil prices and a stronger dollar curbed the metal's appeal as an inflation hedge and an alternative investment. Crude was down more than 4%, pressured by escalating worries over the timing of a recovery in the global economy. The dollar rose against its major rivals, lifted by speculation that leaders from the Group of Eight nations will make efforts later this week to shore up the greenback. On the Comex division of the New York Mercantile Exchange, August gold futures fell $6.70, or 0.7%, to $924.30 an ounce, the lowest settlement level for a front-month contract since June 23.

Commodities moved broadly lower Monday, with the Reuters/Jefferies CRB index, which follows 19 major commodities, down 1.8%. Crude tumbled to its lowest level since May 27. "On top of everything is a little bit anticipation that next week's G8 meeting will come up with something to strengthen the dollar," said George Gero, a precious-metals trader for RBC Capital Markets. "And that's pushing gold and other commodities lower." See full story.