Daily Gold Update

Source:Marketwatch

New York— Gold futures ended lower Thursday as investors decided to book profits following a record high on Wednesday and a rising dollar capped bullion's forays into positive territory. Gold for June delivery, the most active contract, fluctuated earlier but settled $13.90 lower at $1,229.20 an ounce on the Comex division of the New York Mercantile Exchange. The contract on Wednesday gained $22.80, or 1.9%, to $1.243.10 an ounce, its highest settlement for a most-active contract since gold futures began trading in 1974.

Gold opened on the red Thursday but pared losses as the session progressed, even changing paths and touching a fresh record in midday trading, but such gains were short lived as the euro remained under pressure against the dollar. Gold has risen as investors sought an alternative to currencies, spooked by a brewing sovereign debt crisis in Europe. The European Union rescue package, worth 970 billion euros, not only failed to allay those fears but also brought fresh worries of currency debasement and inflation. "All these European problems are not going to go away anytime soon," said Matt Zeman, a trader at LaSalle Futures in Chicago. "This continues to be a market that any dips are met with strong buying." See full story.