Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures dropped 5.6% Wednesday, their biggest one-day percentage drop since March 2008 as a mild correction that started the previous day swelled to a sudden rip current of selling. Gold for December delivery dropped $104 to settle at $1,757.30 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s worst day since March 19, 2008, when the then most-active contract lost 5.8%. The contract fell $30.60 Tuesday to end at $1,861.30 an ounce. Gold last hit a settlement record on Monday, when it finished at $1,891.90 an ounce.

Investors booked their profits after the metal failed to conquer $1,900 an ounce, analysts said. �People who made a lot of quick bucks are leaving the trade to return at lower points,� said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago. Investors favored investments considered riskier on Wednesday, with higher equities and a lower dollar siphoning interest out of gold, he said. Markets were also abuzz with talks of a possible margin requirement increase in the U.S. after the Shanghai Gold Exchange raised its margins Tuesday. See full story.