By Cynthia Lin
NEW YORK (MarketWatch) -- Gold futures continued to slide Wednesday to its lowest level since late May against a strengthening dollar and reports that China would not be adding more gold to its reserves. The precious metal for August delivery fell $7.60, or 0.64%, to $1,187.50 an ounce on the Comex division of the New York Mercantile Exchange. The dollar index (DXY 84.26, +0.18, +0.21%) , a measure of the greenback against six major rivals, gained 0.3% early Wednesday, to $84.33. In a statement to the Chinese public, the State Administration of Foreign Exchange ruled out increasing the proportion of gold already held in its reserves. "China has increased its gold holdings by more than 400 tonnes in the past few years to 1,054 tonnes," said Pradeep Unni of Richcomm Global in a note. "Buying more gold would not help much in diversifying China's reserves."
