Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled lower Thursday after two consecutive record-breaking sessions, playing off comments by the European Central Bank�s president that euro-zone interest rates could be raised as early as next month to quash inflation. Gold for April delivery retreated $21.30, or 1.5%, to settle at $1,416.40 an ounce on the Comex division of the New York Mercantile Exchange. Gold had closed Wednesday at $1,437.70 an ounce, a record settlement, as traders keyed on fears of inflation and lingering concerns about turmoil in the Middle East and North Africa.

On Thursday, attention turned to ECB President Jean-Claude Trichet and his remarks about a possible interest-rate hike coming as soon as April. Gold has reached its recent highs partly on fears of rampant inflation taking hold. The metal is considered a hedge against inflation. Trichet�s comments boosted the euro, which traded at its highest level against the dollar since November. See full story.