Gold turns lower, tracking slide in commodities, stocks - By Kate Gibson, MarketWatch

SAN FRANCISCO (MarketWatch) -- Gold prices fell from five-month highs on Tuesday as other commodities and the U.S. stock market plunged and the dollar rose.

Gold for June delivery, the most active contract, retreated $11, or 0.9%, to $1,172.20 an ounce on Comex. Earlier in the day, prices were at a five-month high and hit an intraday high of $1,192.80 an ounce.
U.S. stocks fell sharply Tuesday as concerns over Greece's bailout package and Europe's national debts weighed on sentiment.
Lazard Ltd. said earlier Tuesday a restructuring of Greece's debt is not part of what the firm has been hired to do and "has never been an option to be considered." The company has been involved in debt restructurings in Ecuador and elsewhere. Read more about Lazard's role in advising Greece.

Oil futures slid more than 3% on fears about the euro zone and a report showing a slowdown in China manufacturing. And gold's recent gains made it only too easy to sell the metal.
"The market clearly hasn't been impressed by this Greek package," said Matt Zeman, a trader at LaSalle Futures Group in Chicago. Hindering much of the safe-haven buying, however, was the strengthening dollar, he said.
"With the dollar being as strong as it is, [gold] is finally coming under pressure," he said. "The market was also kind of due for a pullback" after hitting a five-month high earlier, Zeman added.
The dollar index /quotes/comstock/11j!i:dxy0 (DXY 83.20, +0.93, +1.13%) , which contracts the greenback against six other rival currencies, rose 0.9% to 83.21 on Tuesday. See Currencies.
Metals tied to industrial uses also felt the pinch of a manufacturing slowdown in China, with copper falling to two-month lows on Tuesday. Copper for July delivery lost 10 cents, or 3.1%, to $3.19 a pound, deepening losses as other markets wobbled.
Palladium lost 5.5%, leading losses among metals. Palladium for June delivery lost $30.20 to $517.20 an ounce.
China's manufacturing activity remained in expansion in April, indicating the industrial rebound is now well into its second year of growth, though there were indications the recovery may be losing steam, according to an HSBC survey.
HSBC's survey, conducted in association with market research firm Markit, reported a Purchasing Manufacturing Index (PMI) reading of 55.4 in April, compared with 57.0 in March. The result, released Tuesday morning, ranked as the weakest reading in six months.
U.S. April auto sales jumped to 11.2 million cars and trucks from 9.2 million a year ago, according to Autodata. The results failed to stack up to the March numbers, which were goosed by incentive spending to reach 11.8 million vehicles.
Palladium is used in catalytic converters in cars. Platinum, which is also used in car catalysts, was also posting losses.
Platinum for July delivery lost $41.80, or 2.4%, to $1,687.10 an ounce.
The SPDR Gold Trust /quotes/comstock/13*!gld/quotes/nls/gld (GLD 114.72, -1.01, -0.87%) , the largest exchange-traded fund backed by gold, lost 0.8%.
Lihir Gold of Papua New Guinea is now urging stockholders to approve an improved $8.8 billion offer from Newcrest Mining Ltd. of Australia in a deal that would create one of the globe's biggest gold producers, the companies said Tuesday.
Newcrest, which made its initial bid for Lihir on April 1, on Tuesday raised its bid by 6.4%, or $8.8 billion, they said in a joint statement. Read more about the proposed deal, which is still subject to regulatory approval.