US Gold (UXG) Falls Along with Gold Prices

US Gold (AMEX:UXG) fell in Wednesday trading, as gold prices came under pressure again in the ongoing volatile market conditions.

Gold for June delivery dropped $15.50 to settle at $1,501.40 at the Comex division of the New York Mercantile Exchange. The gold price Wednesday traded as high as $1,526.80 and as low as $1,495.40.

Gold lost 1 percent overall and silver plunged close to 8 percent on a broad commodity sell-off, as the U.S. dollar index climbed over 1 percent to $75.41, as the euro was weakened by the seemingly endless sovereign debt crisis in Europe that isn't going away.

Gold and silver also garnered no support from rising inflation data. China said prices dropped to 5.3 percent in April from 5.4 percent in March, but that number was higher than the 5.2 percent looked for.

The Bank of England said that inflation could hit 5 percent in 2011.

Silver prices dropped almost $3 to close at $35.51 an ounce.

US Gold Corporation participates in the exploration for, development of, production, and sale of gold, silver, other precious metals, and base metals.

US Gold (AMEX:UXG) closed Wednesday at $7.01, falling $0.76, or 9.78 percent.