Gold News & Info

Source: Marketwatch

San Francisco— Gold futures recouped some of the day's losses, but remained below the $930-an-ounce level early Monday afternoon as traders kept a close watch on movements in the oil and currency markets. Gold for August delivery rose $1.20 to $928 an ounce on the New York Mercantile Exchange. It recovered from a low of $922.40, but traded below the day's high of $932. Last week, the precious metal posted a loss of $31.20 an ounce. In electronic trading on Globex, August gold was last up $1.60 at $928.40 an ounce.

"Gold continues [to be] riveted to the dollar, but seems to have strong support at $930 and at the moment doesn't want to go lower," said Julian Phillips, an analyst at GoldForcaster.com. "And no wonder, as banks continue to shrink debt, fearing that a continuation of slack lending practices will hurt their bottom line more still," he said in emailed comments. "That means credit deflation will continue alongside other ills in the financial market and will depress the U.S. economy even more, so the Fed must err on the side of growth and allow inflation to grow." See full story.