Daily Gold Update

Source: MarketWatch

New York— Gold futures fell Monday for the first session in three, moving below $920 an ounce as a rising U.S. dollar reduced gold's investment appeal and as some investors were forced to sell the metal to cover their losses in other markets. Gold for April delivery fell $24.70, or 2.6%, to end at $918 an ounce on the Comex division of the New York Mercantile Exchange. Meanwhile, holdings in the largest gold exchange-traded fund fell for the first day in nearly two months. "Given the likely need for cash due to equity market volatility it is likely that gold will run into further pockets of long liquidation in the coming sessions," wrote James Moore, a precious metals analyst at TheBullionDesk.com. In currencies trading, the dollar rose against most of its major rivals, with the dollar index up 0.2% at 88.957. A higher greenback tends to push down dollar-denominated gold prices.

Gold had gained 4% in the previous two sessions, boosted by safe-haven buying amid growing evidence that troubles in the world economy were deepening. Despite Monday's loss, flight to safety could raise gold prices again, analysts said. "Given the continued weakness of equities, investors may again look towards safe-haven asset types, particularly gold," wrote Moore. He said he expected the metal to set a new high above $1,030 during the first half of the year. See full story.