Daily Gold Update

Source: Marketwatch

New York— Gold futures dropped nearly 3% to trade below $800 an ounce on Thursday, coming under pressure as the dollar gained against most other major currencies, lowering the investment allure of the precious metal. Gold for February delivery fell $20.30, or 2.5%, to $798.50 an ounce on the New York Mercantile Exchange. Silver futures tumbled 4%. "Gold's looking more at the interest rates which are inching higher," said Charles Nedoss, gold analyst at the Peak Trading Group.

"Both oil and the dollar look set to provide price direction in the coming sessions, but for the moment gold appears comfortable trading around the $795-$815 area, with further rallies likely to be used as profit-taking opportunities ahead of year-end," said James Moore, an analyst at TheBullionDesk.com, in a research note. "Investment demand is still strong though, reflecting the unease in the financial markets, with holdings in the StreetTRACKS GLD fund now at a record 615.9 tons," Moore said. See full story.