Gold down for second day as dollar rises, equities gain

Reuters (15/12) - Gold fell for a second session on Wednesday as the dollar rallied after data showed U.S. producer prices rose sharply in December even though there were few signs of sustained price pressures.

The Labor Department said its seasonally adjusted producer price index rose 0.4 percent in December, the biggest rise in six months. The Federal Reserve's Beige Book report also showed the U.S. economy kept growing at a moderate pace from late November through the end of 2013, with some regions expecting a pick-up in growth. Spot gold dropped 0.4 percent to $1,240.15 an ounce by 3:37 p.m. EST (2037 GMT). U.S. COMEX gold futures for February delivery settled down $7.10 at $1,238.30 an ounce, with trading volume about 45 percent below its 250-day average, preliminary Reuters data showed.