Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures retreated more than 1% Thursday, giving back the previous session�s paltry gains and then some as the dollar traded higher and other commodities such as oil headed lower. Gold for April delivery retreated $17.10, or 1.2%, to $1,412.50 an ounce on the Comex division of the New York Mercantile Exchange. Prices in electronic trading turned higher, however, after reports of clashes between police and demonstrators in Saudi Arabia on the eve of planned protests calling for democratic reforms in the world�s top oil-exporting country. Silver retreated from a 31-year high, and copper succumbed to downward pressure after spending some time in the black.

Earlier Thursday, investors grappled with news that China posted a $7.3 billion trade deficit for February, while markets had expected a surplus. �It�s the long-awaited turn in global growth, which takes risk off the table. There�s the possibility that the China story has peaked, which in general is bearish for gold,� said James Cordier, president and head trader at Liberty Trading Group in Florida. �Finally we�re seeing legitimate signs that China is [slowing]: the first trade deficit in years, China�s need and consumption of copper is almost nonexistent, car sales are down dramatically, and if China is not exporting, they are in trouble, a warning that growth is slowing,� he added. See full story.