Daily Gold Update

Source: MarketWatch

New York— Gold futures, suffering from the longest losing streak in eight years, dropped below $750 an ounce Thursday for the first time in nearly a year — and analysts say the price of the precious metal may have finally bottomed. "Gold prices might already be trading at oversold levels," wrote Tobias Merath, head of commodity research at Credit Suisse, in a note released Thursday. "Fundamentals still speak in favor of a recovery to $900 or slightly higher in the next few months." Gold for December delivery fell $17, or 2.2%, to close at $745.50 an ounce on the Comex division of the New York Mercantile Exchange Thursday, the first time the metal closed below $750 since last October. After market closed, it moved higher in electronic trading.

Investor demand for physical gold is still strong, said Jeffrey Christian, managing direct of commodities consultancy CPM Group. Demand in markets such as Mumbai and Dubai have held up well. "Investors in physical metal appear to be taking the drop in prices as an opportunity to buy more metal at lower prices," he said. See full story.