Daily Gold Update

Source: Marketwatch

New York— Gold futures touched a new record of nearly $1,034 an ounce Monday before giving back some of their gains, as the Federal Reserve's move to cut the discount rate by a quarter of a percentage point to help shore up major financial firms reverberated across the financial markets. "It almost feels like a bit of a panic out there and justifiably so," said Peter Spina, chief investment analyst at GoldSeek.com. "Volatility is explosive and overall risks to the market remain to the upside, especially when taking a mid-to-longer-term view." Gold futures for April delivery stood at $1,012.60 on the New York Mercantile Exchange, after surging to an overnight high of $1,033.90 an ounce, a gain of 3.4%. The benchmark contract closed Friday's session at $999.50 an ounce on the Nymex.

Yet, base metals such as copper along with precious metals used in industry sold off. Copper for May delivery skidded 3.8% to $3.68 a pound, June palladium fell 2.3% to $475 an ounce, and May silver lost 2% to $20.25 an ounce. "The base metals and industrials precious ones have fallen with risk-reduction trades," said James Moore, metals analyst at London-based BullionDesk.com. "A slowdown of the global economy is going to reduce demand for those metals. Also, given the wider fears about credit in the market, cash generation is coming into play, and a lot of people are liquidating positions." See full story.