--Comex December gold down $6 at $1,824.10 an ounce --Moody's downgrades of Societe General, Credit Agricole fail to spur refuge demand --Investors stay on the sidelines, await further news after euro-zone conference call By Matt Day Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Gold futures eased Wednesday as hopes for progress on Europe's debt crisis left uncertain demand for the metal as a refuge. The most actively traded gold contract, for December delivery, recently traded $6 lower, or 0.3%, at $1,824.10 a troy ounce on the Comex division of the New York Mercantile Exchange. Moody's Investors Service Wednesday downgraded the credit rating of two of France's largest banks, a widely expected move. The ratings firm cited funding and liquidity problems in downgrading Societe Generale SA (GLE.FR) and exposure to debt-laden Greece for Credit Agricole SA (ACA.FR). Though the news highlighted the precarious position of some of Europe's largest financial institutions, it wasn't enough to spur renewed demand for gold as a safe-haven. Market participants instead focused on the view that Europe's leaders were taking steps to shore up confidence in the currency union. German Chancellor Angela Merkel rejected speculation that Greece is near bankruptcy, and is slated to participate in a conference call with Greek Prime Minister George Papandreou and French President Nicolas Sarkozy later Wednesday. The gold market has lost much of its upward momentum since pulling back from a record above $1,900 an ounce early last week, as traders cashed out to profit from the metal's rise amid a stronger dollar and some cautious optimism on the global economic outlook. "The fact that the dollar has been a little firmer of late has stolen some of gold's thunder," said Rob Kurzatkowski, senior commodity analyst with optionsXpress. Gold and the dollar are both widely used as safe havens, and can rise when investors are looking to shun perceived risky assets such as stocks and commodities. But a strong dollar can also curb gold demand, as a rising greenback makes dollar-denominated gold futures more expensive for buyers using other currencies. The dollar was near steady against other major currencies Wednesday. The ICE U.S. Dollar Index was at 76.997, little changed from 77.067 late Tuesday in New York. Despite the hurdles presented by a stronger dollar, the yellow metal should continue to draw buying interest as long as worries about the global economy weigh on the minds of investors. "Uncertainty surrounding European sovereign debt as well as the state of the global economy continue to paint a favorable backdrop for gold," analysts with Barclays Capital said in a note. "We expect price dips to be short-lived during the seasonally strong period for physical demand." Physical demand for gold typically picks up ahead of the end of the calendar year as buyers in India, the world's largest gold market, buy during the wedding and festival season. --By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

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