Spot gold lower in response to oil price weakness; oil price drops nearly $4 overnight, linked to hopes Iran would respond favorably to an international package of incentives to cease uranium enrichment. G8 summit seeks to deflate expectations that top Western industrialized nations could come up with plan to lower oil prices or remedy impact on global economy of high oil prices. European Commission president Barroso says not much G8 can do in near term to influence price of oil. G8's candor reminder that oil prices beyond any consumer government's ability to influence, but there's debate within Iranian government on how to respond to incentive package, says HSBC analyst James Steel. "Should the oil market be influenced by the official Iranian response, when it becomes known, then gold prices may also be influenced in the same direction, we believe." Spot gold at $924/oz, down $2.10 vs NY close
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