Gold News & Info

Source: Marketwatch

New York— Gold futures declined in volatile trading on Wednesday, as traders sold the precious metal and other commodities amid rising worries over economic growth. Gold for February delivery dropped $6.80 at $883.50 an ounce on the New York Mercantile Exchange. Earlier, gold hit an intraday low of $877 an ounce. Gold "opened under renewed liquidation pressure … as participants continued to exhibit doubts about the effectiveness of the Fed injection and resumed their quest for risk aversion and instant liquidity," said Jon Nadler, a senior analyst at Kitco Bullion Dealers, in a research note.

On Tuesday, gold futures rose $8.60 to end at $890.30 an ounce, getting a boost from an emergency rate cut by the Federal Reserve meant to halt a global market meltdown and prevent a recession. "Increasing turmoil in international markets will lead to safe-haven demand for gold," said Mark O'Byrne, director of Gold and Silver Investments Ltd., in a research note. "Gold remains the ultimate safe-haven asset." Gold will likely remain above $840, given the macroeconomic climate, and in the short term it will more likely reach $1,000 rather than decline to $800, he said. See full story.