Daily Gold Update

Source: Marketwatch

New York— Gold futures fell Friday to near $990 an ounce, ending the week down for the first time in six weeks as investors digested mixed U.S. economic data. Holdings in the biggest gold exchange-traded fund showed a modest decline, which also weighed on gold prices Friday. The most active December gold futures fell $7.30, or 0.7%, to $991.60 an ounce on the Comex division of the New York Mercantile Exchange. The thinly traded September contract lost $7.30, or 0.7%, to $990.20. Both contracts ended the week down 1.9%.

Gold had rallied 6.5% in the previous five weeks. The September contract rose to $1,019.80 on Sept. 16, an all-time high for a nearby Comex gold contract. Holdings in SPDR Gold Trust, the biggest gold ETF, fell to 1,094.11 metric tons Thursday, down 7.62 metric tons from the previous session. Holdings, however, have increased 32 metric tons this month. "The price of gold could fall further if short-term-oriented market players square their long positions now that prices have dipped below $1,000," said analysts at Commerzbank in a note. "A sharper fall in prices should be prevented by the physical demand in the run-up to the festive and wedding season in India." See full story.