Daily Gold Update

Source: Marketwatch

New York— Gold futures finished lower on Thursday, retreating after hitting a fresh 18-month high, as the dollar gained back some ground after slumping to its lowest level this year. Gold for December delivery, the most active contract, fell $6.70, or 0.6% to finish at $1,013.50 an ounce. In Asian trade, it climbed as high as $1,025.80 an ounce, a fresh 18-month high. The front-month but lightly traded September contract fell $6.60, or 0.6%, to finish at $1,012.30 an ounce. The record intraday price for a front-month gold contract is $1,033.90 an ounce, set on March 17, 2008.

Analysts said a bleak outlook for the U.S. dollar earlier helped gold climb to an 18-month high. "We expect further price gains as real interest rates are likely to fall and our [foreign-exchange] analysts see further downside for the [U.S. dollar]," analysts at Credit Suisse wrote in a note to clients issued Thursday. The dollar, which has served as a safe-haven asset over the past year because of its low yield, slumped to its lows of the year on Wednesday, after more upbeat U.S. economic reports. See full story.