Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures closed lower Thursday as gains for U.S. stocks on the heels of upbeat economic data dulled investment demand for the precious metal, sending prices lower for a sixth-consecutive session. Traders are �liquidating their gold positions before year end, locking in last-minute profits in a mad rush to raise capital ahead of the last 2011 market close,� said Seth Rabinowitz, who covers commodities as a partner at Silicon Associates. �Traders don�t want to watch the ball drop while worrying they have insufficient capital to start the new year on their strongest foot, particularly while pondering otherwise uncertain profits from the previous year,� he said.

The February gold futures contract fell $23.20, or 1.5%, to settle at $1,540.90 an ounce on the Comex division of the New York Mercantile Exchange. Futures prices have now suffered a six-session loss of 4.7%, but they�re still on track for a gain of over 8% for the year. �It is worth remembering that, despite the recent correction, gold is still on course to post its eleventh consecutive year-on-year gain, and that given the ongoing debt problems facing many economies, record-low interest rates and the highs in gold this year, those with a longer-term outlook could view current levels as a buying opportunity,� said James Moore, analyst at TheBullionDesk.com, in a note. See full story.