Daily Gold Update

Source: MarketWatch

New York— Gold futures ended lower Thursday, reversing course after the previous session's big rally, as the U.S. dollar rallied against other major currencies. Gold for February delivery fell $7.90 to end at $860.60 an ounce on the New York Mercantile Exchange. Earlier, the gold contract soared as high as $879.60 an ounce on Globex. On Wednesday, gold futures rose $25.80 to end at $868.50 an ounce in Nymex dealings.

"The gold rally remains largely a dollar phenomenon, courtesy of the Fed's flooding of liquidity and target-based Fed funds policy," said Ashraf Laidi, chief market strategist at CMC Markets. "Oil and industrial metals such as copper remain pressured by weak demand story." In foreign-exchange trading, the U.S. dollar rallied against its major rivals Thursday, recovering some ground after it was battered in the wake of the Federal Reserve's historic efforts this week to revive the U.S. economy. See full story.