Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures on Monday fell to their lowest in two weeks as concerns about French banks sparked a stock selloff and spurred investors to sell other assets to cover losses. Gold for December delivery was down $46.20, or 2.5%, at $1,813.30 an ounce on the Comex division of the New York Mercantile Exchange. �Gold sell stops are being placed as asset managers need to raise cash to stem portfolio losses,� wrote George Gero, vice president in global futures at RBC Capital Markets, in emailed comments.

With gold�s recent record run, some investors also have judged the metal to be overvalued, according to Stephen Platt, a commodity analyst with Archer Financial Services in Chicago. Gold set an intraday record of $1,923.70 an ounce Tuesday last week, but the failure �to make new highs and sustain them was a source of disappointment� that may have spurred the recent selling, he said. The retreat for gold deepened at the start of the New York trading session after a selloff for bullion in Asia and European market action, alongside a pullback in equity markets around the globe. See full story.