Daily Gold Update

Source: Marketwatch

New York— Gold futures declined 2% Thursday, pressured by renewed worries over the credit markets, a sharp fall in U.S. stocks and a rise in the dollar. Gold for December delivery closed down $13.50, or 2%, at $672.80 an ounce on the New York Mercantile Exchange. That was the contract's weakest closing level since July 27.

"When we see global liquidity crunches like this, the long only funds in both stock and commodities markets simply liquidate as a means of getting out of the market and into cash," said Zachary Oxman, senior trader at Wisdom Financial, in emailed comments. "It seems that today, the flight to quality has been to the bond market and out of gold and stocks," Oxman said. "If you look at all of these short-term, capitulation-type moves here in 2007, they have all been good buying opportunities." See full story.