Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled with a loss of nearly $24 an ounce on Tuesday, pressured by a growth slowdown in China�s economy in the third quarter, as traders anticipated commodity regulators would pass new rules to set position limits on futures trading. Those factors helped push the metal below some key technical levels, sending prices lower for a second-straight session. The long-awaited rules, approved by U.S. Commodities Futures Trading Commission late Tuesday after the end of the regular gold trading session, limits the number of commodity contracts that any investor can hold in agriculture, energy or metals contracts. Read more about the commodity trading caps.

Ahead of the official approval, traders and investors in Asia considered the CFTC rules as �scary and … reduced the net long positions,� said Chintan Karnani, chief analyst at Insignia Consultants in New Delhi. Gold for December delivery declined $23.80, or 1.4%, to settle at $1,652.80 an ounce on the Comex division of the New York Mercantile Exchange. The contract, which had traded earlier as low as $1,628.20, fell $6.40 on Monday. Gold prices appear to have formed an intraday bottom at the day�s session low, said Karnani. Following the CFTC approval of the new futures trading rules, gold edged up by 0.3% in electronic trading on Globex, from the Comex closing level. See full story.