Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures finished lower after swinging between small gains and losses Wednesday, with traders booking profits following a rebound in the previous session. Gold for December delivery declined $34.40, or 2.1%, to settle at $1,618.10 an ounce on the Comex division of the New York Mercantile Exchange. Gold snapped a four-day losing streak on Tuesday, settling 3.6% higher as a recovery in equities stanched money flows out of gold and other commodities. �After the rally, you are seeing some profit-taking,� said Stephen Platt, an analyst with Archer Financial Services in Chicago. �People are shedding some risk after the volatility they�ve seen.�

Despite the sharp drop for gold in the last week, redemptions from gold exchange-traded funds have been light, said Shamin Mansoor, analyst at Daniel Stewart. On top of that, lower prices also appear to be bringing back emerging-market buyers, Mansoor said in a note to clients. Commerzbank analysts said gold�s price fall is driving increased buying of physical gold particularly in India, where a holiday season during which gold buying is considered auspicious is about to begin. See full story.