Daily Gold Update

Source: Marketwatch

New York— Gold futures shed earlier gains Wednesday, as stronger U.S. and Chinese manufacturing data quieted fears the global recovery was stalling, increasing investors' appetite for risk. Gold for December delivery settled down $2.20, or 0.2%, to $1,248.10 an ounce at the New York Mercantile Exchange. Earlier it had risen as high as $1,256.60 an ounce, within $2 of a record high settlement of $1,258.30 an ounce set in June. Gold had held to gains immediately after payroll processor ADP released its estimate for August employment, taking part in a broad rush to commodities including oil and copper.

But bullion — which rallied in August as stocks and oil tanked — reversed lower just ahead of the Institute for Supply Management's release of its August survey of manufacturers, as stocks surged at the open. Adam Klopfenstein, senior market strategist at Lind-Waldock, said Wednesday's positive economic indicators are removing a "flight to quality" effect, reducing the allure of gold as a safe haven. "With better-than-expected data coming out of ISM and China and the markets rallying, we're seeing light selling pressure as investors become more tolerant of risk," Klopfenstein said. See full story.