Daily Gold Update

Source: MarketWatch

New York— Gold futures ended Tuesday's volatile trading down for a fourth straight session, as investors continued to reduce safe-haven buying on hopes that the U.S. government's latest plan to inject capital into banks will rescue the ailing financial industry. Gold for December delivery closed down $3, or 0.4%, at $839.50 an ounce on the Comex division of the New York Mercantile Exchange. Gold has fallen $67 in the past four sessions. The precious metal was edging lower "as reduced safe-haven demand was seen," said James Moore, analyst at TheBullionDesk.com. However, "the metal looks set to remain volatile in the coming session," he said, as investors watched the government's new rescue plan.

Investors tend to buy gold as a hedge against inflation. Demand for the precious metal also tends to rise as the dollar weakens. "The unintended consequence of the ongoing financial bailout will be a return of inflationary pressures to the commodity markets," wrote analyst Francisco Blanch at Merrill Lynch.In a research note released Monday, the analysts at Merrill predicted that gold prices will hit $1,500 an ounce and that oil will rise to $150 a barrel. They didn't specify when gold will hit the price target. See full story.