Gold for August delivery closed at $902.90 an ounce on the New York Mercantile Exchange, down $13.60, or 1.5%. It traded as low as $895.20 earlier, the contract's lowest intraday level since June 25.
A stronger dollar, gains in oil, and a decent rally in equities sparked by the better-than-expected ADP survey "created conditions, which sapped most of the remaining energy from gold and pushed it to near $895 during the morning trade," said Jon Nadler, a senior analyst at Kitco Bullion Dealers.
In terms of closing levels, "maintenance of $900 is now a top priority and $915 now becomes resistance," he said in emailed comments.
Overall, "commodities remain under sector rotation pressure and the prospects for the dollar appear more positive as financial institutions are seen as having gone through the worst of the write-down phase of their assets in this crisis," said Nadler.
Earlier Wednesday, the dollar rose in foreign-exchange trading after data based on a sampling of ADP payrolls indicated that July's private-sector employment rose by 9,000. Including some 20,000 government workers typically hired in a given month, the ADP index suggests U.S. nonfarm payrolls rose by about 30,000.
The government will release its pivotal report on payrolls and joblessness on Friday, with economists expecting a loss of 70,000 jobs

<IMG class=pixelTracking height=1 width=1 border=0> 73.30, -0.01, 0.0%) , which tracks the performance of the greenback against a basket of other currencies, pulled back a bit as oil prices gained more ground.
The index was last at 73.23, compared with 73.285 in late North .

Gold "will remain vulnerable to further bouts of dollar-related selling," said James Moore, an analyst at
"The greenback's recent gains suggest the likely impact of an economic slowdown in the U.S. has been factored into the currency, and that with other parts of the western world now showing signs of economic downturn, their currencies may in turn begin to struggle," Moore wrote in a research note.
On Tuesday, gold fell .20 to finish the session at 6.50 an ounce, a 1.2% pullback.

Spot gold negated important moving average support at $915/$912, according to Peter Grant, senior metals analyst for Centennial Precious Metals in Denver. "The spike lower earlier in European trading suggests stops were triggered below this level."
"The next tier of support is at $902/$900, where good physical buying interest is likely to emerge," he said in emailed comments. "A close back above $912/$915 is needed to ease short-term pressure on the downside."
Grant said that despite recent losses within the broad $1,032.20/$845.50 range, the long-term uptrend in gold remains intact.

Other metals on Nymex finished on a mixed note. September silver futures added 9 cents to close at $17.465 an ounce and September copper added 5.5 cents to close at $3.646 a pound, but October platinum futures fell by $7.30 to end at $1,738.10 an ounce and September palladium lost $7.65 to finish at $375.70 an ounce.
Most metals equities traded lower Wednesday.