Daily Gold Update

Source: Marketwatch

New York— Gold futures fell $8 an ounce Thursday to post their first loss this month for the New York floor-session, pressured by a rebound in the U.S. dollar. Gold for December delivery fell $8, or 0.7%, to end at $1,106.6 an ounce by the end of floor trading on the New York Mercantile Exchange's Comex division. It was the contract's first loss for the official settlement this month. The tumble followed a new high by the contract of $1,123.4 an ounce, hit during the session in electronic trade. The front-month but more thinly traded November contract also lost $8 to end at $1,106 an ounce. It rose to $1,121.30 earlier, the highest level for a front-month contract.

After hitting record highs in the morning, gold sold off "as the dollar started to improve," said George Gero, a precious metals trader at RBC Capital Markets, in emailed comments. The dollar index rose 0.7% to 75.643, supported by comments by U.S. Treasury Secretary Timothy Geithner that the U.S. government's borrowing needs would be substantially less than expected. See full story.