Daily Gold Update

Source: MarketWatch

New York— Gold futures fell more than 5% Thursday to their lowest level in two weeks, as the U.S. Senate's approval of a revised $700 billion bailout plan boosted the dollar, reducing dollar-denominated prices of the precious metal. Gold's losses followed broad declines in precious metals and other commodities. Silver plunged 11%. Gold for December delivery lost $49.30, or 5.6%, to $838 an ounce on the Comex division of the New York Mercantile Exchange. It fell to $833.50 earlier, the lowest since Sept. 17.

"In short term gold is likely to remain in a softer mood as approval of the U.S. rescue package will no doubt boost the dollar and investor risk appetite," said James Moore, an analyst at TheBullionDesk.com. Gold prices have been very volatile recently as investors awaited Congress's decision on the rescue plan. Some analysts said that even if the plan is passed, the U.S. economy is still going to succumb to a recession. "Bailout or no bailout, gold is going higher in price as no matter what size the bailout is, it will not prevent a probable recession in the U.S.," said Mark O'Byrne, executive director at Gold & Silver Investments. See full story.