Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures fell nearly 2% Thursday to log a second-straight session of declines as a drop in weekly U.S. jobless claims, a better-than-expected bond auction in Italy and promising developments in Greece helped fuel a rally in U.S. stocks, signaling an improvement in risk sentiment. Gold for December delivery fell $32, or 1.8%, to settle at $1,759.60 an ounce on the Comex division of the New York Mercantile Exchange after touching a low of $1,736.60. Prices lost 0.4% on Wednesday after tallying a gain of 2.5% in the two previous sessions.

�Gold continues to conform to money market swings in which demand for riskier assets sometimes includes gold, and sometimes not,� said Richard Hastings, a macro strategist at Global Hunter Securities. �And if the demand for stocks requires fewer new positions in spot gold, then gold declines on these trading days � like today.� For gold, �there will always be declines, and often on strong stock market days, but we are not declining to price levels seen four or five months ago,� said Hastings. He believes gold�s trending higher, with a new trendline forming along the $1,725 level. �A return to the $1,600�s is unlikely at this time.� See full story.