Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled lower Thursday, snapping a three-day winning streak that took the metal above $1,800 an ounce, after the main metals exchange operator increased the money needed to trade gold futures contracts. Gold for December delivery declined $32.80, or 1.8%, to end at $1,751.50 an ounce on the Comex division of the New York Mercantile Exchange. It traded as low as $1,753.50 an ounce and as high as $1,817.60 an ounce earlier. Gold on Wednesday settled at a record $1,784.30 an ounce and traded as high as $1,801 an ounce, an intraday record, on concerns about the health of European banks and France�s sovereign-debt ratings in addition to worries about the U.S. economy in the wake of Standard & Poor�s credit downgrade late last week.

Surpassing $1,800 �was a natural place for people to lighten up� on their gold positions, said Charles Nedoss, a senior market strategist with Olympus Futures in Chicago. Gold could pull back further after the sharp recent gains, but the metal �easily� could end the year at around $2,000 an ounce, he added. After settlement Wednesday, CME Group Inc., which owns the main U.S. exchange for metals, grains and energy, including the Nymex, raised margin requirements for trading in gold, prompting investors unwilling or unable to put up more money to sell. See full story.