Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures posted steep losses Thursday as a mild bout of profit-taking picked up speed as the dollar strengthened, and as optimism over earnings from a slate of international conglomerates shifted some investors into equities. Gold for December delivery retreated $18.60, or 1.4%, to settle at $1,325.60 an ounce on the Comex division of the New York Mercantile Exchange. That�s gold�s lowest close since Oct. 4. The contract had wavered between gains and losses earlier, following gains of 0.6% on Wednesday and a 2.6% stumble on Tuesday. From gold�s latest in its string of record highs — $1,377.60 on Oct. 14 — gold has lost $52, or 3.8%.

Gold is on track to post its tenth year of gains, however. So far this year, the metal has added 21%. That follows gains of 24% in 2009. Gold�s Thursday decline accelerated after the dollar turned higher. The negative correlation between the two �has been stronger than ever,� said Michael K. Smith, president of T & K Futures in Florida. A stronger dollar makes commodities more expensive to holders of other currencies. But gold and other commodities are expected to keep their long-term bullish trend intact on inflation concerns, he said. See full story.