Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures fell Thursday as the flow of safe-haven buying slowed to a trickle, some investors took profits following a 1.3% rally in the previous session, and a higher dollar kept the metal and other commodities under pressure. Gold for December delivery GC1Z -0.76% lost $14.10, or 0.8%, to end at $1,668.50 an ounce on the Comex division of the New York Mercantile Exchange. Gold went back to its �classic inverse correlation with the dollar,� and also moved in tandem with falling stocks, deflating safe-haven buying interest, said Adam Klopfenstein, a senior market strategist with MF Global in Chicago.

Investors that bought gold hoping for it to go up when equities and other assets are down got disappointed and are getting out of the trade, he said. �We need to see gold to rally in face of equity weakness� to revert that negative sentiment, Klopfenstein added. In addition, gold stopped $18 short of $1,700 a ounce the previous session, and failure to reach that milestone, last achieved back on Sept. 22, �could mean renewed selling by short-term oriented financial investors,� analysts at Commerzbank said in a note. Physical demand, mainly from Asia, is likely to prevent a sharper price pullback, they said. See full story.