Daily Gold Update

Source: MarketWatch

New York— Gold futures ended Wednesday's volatile session down slightly, as nervous investors watched government efforts in the U.S. and Europe to rescue the ailing financial industry. Analysts had projected gold prices to surge as the global rescue efforts to inject liquidity into the market are expected to push up inflation rates. But gold's recent trading has repeatedly defied their expectations. The metal has closed lower for five straight sessions, losing nearly $70 during the period. Gold for December delivery closed down 50 cents at $839 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $859.20 earlier, but also fell to as low as $833.10.

Some analysts, however, said it's only a matter of time before gold rises. "An extraordinary amount of liquidity has been pumped into the system this year," said Peter Grant, senior analyst at USAGOLD. "I anticipate further debasement of all currencies, including the dollar, which will ultimately drive gold prices higher." See full story.