By Matt Whittaker Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Gold futures are down slightly as investors move away from riskier assets and the U.S. dollar rises.
The most actively traded gold contract, for August delivery, recently was down $3.30, or 0.3%, at $1,235.30 an ounce on the Comex division of the New York Mercantile Exchange.
"Everything is getting hit today," said Bart Melek, global commodity strategist with BMO Capital Markets.
Market sentiment was under pressure on news that the Conference Board corrected its leading indicator for China's economy, revising it down to show 0.3% growth in April from 1.7% earlier due to a calculation error.
Equities are also slightly lower, but gold isn't receiving much of its traditional safe-haven bid.
That flight-to-quality money was moving into the U.S. dollar as nervous investors sought out safe-haven currencies on worries about global growth and financial system stability.
A stronger dollar tends to pressure gold by making the dollar-denominated metal more expensive for buyers using other currencies, which can dampen demand.
Gold is also viewed as a safe-haven asset, but the metal's price is already near historic highs, which is blunting some of that buying, Melek says.
In potentially bearish news for gold, India's gold imports probably will fall 40% in 2010 from 343 metric tons last year as prices climb to new highs, Bombay Bullion Association President Suresh Hundia said.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
