Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures declined Wednesday as investors veered toward investments considered riskier and shied away from the metal�s recent price spike. Gold, which retreated modestly Tuesday, fell sharply Wednesday as global equity markets gained and on reports that President Barack Obama will propose a plan to create more jobs. The metal for December declined $55.70, or 3%, to settle at $1,817.60 an ounce on the Comex division of the New York Mercantile Exchange. That was gold�s largest one-day drop in two weeks, and the lowest settlement for the metal in a week and a half.

Prices dropped by as much as $79 an ounce to trade below $1,800 an ounce earlier. Futures prices haven�t closed below $1,800 since Aug. 29. The dip below $1,800 �didn�t last for long because there was pent-up buying that came in,� said Adam Klopfenstein, a senior market strategist with MF Global in Chicago. �The bullish themes for gold are still around.� Asian and European equities posted strong gains, while U.S. stocks also traded higher, sapping some interest in gold. �The fast money is getting out,� not the long-term buyers who view gold as a storer of wealth, he added. See full story.