Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures came off a record high Monday as renewed signs of potential trouble in the European Union boosted the dollar, but bullion showed some residual strength to trade only modestly lower. Gold for December delivery retreated $2, or 0.2%, to $1,315.50 an ounce on the Comex division of the New York Mercantile Exchange. Silver couldn�t resist the headwinds for gold and came off its 30-year high. December silver retreated 4 cents, or 0.2%, to $22.02 an ounce.

Analysts at BNP Paribas saw silver futures averaging $19.70 next year. �Investment demand has the upper hand� despite a surplus in the physical market, they said. In the short term, silver �is vulnerable to a correction should gold prices retreat,� they added. Gold added to losses and silver turned after the day�s round of macroeconomic data was viewed as positive. Traders had to contend with a 0.5% dip in factory orders, within expectations. They also pored over a report from the National Association of Realtors that said its pending-home-sales index rose 4.3% in August. See full story.