Daily Gold Update

Source: MarketWatch

New York— Gold futures tumbled more than 4% Thursday to their lowest level in one month, as nervous investors sold futures contracts to seek cash. Some hedge funds were forced to liquidate their positions to cover losses in stocks and other markets, according to economists at research firm Action Economics. Gold for December delivery fell $34.50, or 4.1%, to end at $804.50 an ounce on the Comex division of the New York Mercantile Exchange, the lowest closing level since Sept. 17.

"For the moment, the weight of the deep funk felt in the global markets is keeping gold on the defensive, while would-be buyers … find more comfort sitting on the piles of cash," said Jon Nadler, senior analyst at Kitco Bullion Dealers. Also pushing gold prices lower were news reports that central banks were selling gold. The latest weekly data from the European Central Bank showed 7.6 tons of gold was sold during the week ended Oct. 10, according to Bloomberg, citing Barclays Capital. Central banks sell gold to earn more cash, but their selling is helping push the gold prices lower, analysts said. See full story.