MW: Gold futures fall as traders lock in some gains
By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) -- Gold futures fell nearly 2% early Thursday, coming under pressure by a modest bounce in risk appetite, U.S. dollar strength and profit taking.
Gold for December delivery dropped $16.10 to $890.40 an ounce in electronic trading on Globex.
"While yesterday's coordinated rate moves may have a greater impact on investor sentiment, it seems that we still have a long way to go before conditions begin to stabilize," said James Moore, an analyst at TheBullionDesk.com, in a research note.
"As a result, we expect gold to benefit further from investor safe-haven demand, although in the short term the metal will remain vulnerable to bouts of cash generating profit-taking," Moore said.
Gold's decline early Thursday comes a day after the U.S. Federal Reserve, European Central Bank, Bank of England and other central banks made coordinated rate cuts.
Gold futures gained $24.50, or 2.8%, to close at $906.50 an ounce Wednesday on the New York Mercantile Exchange.
In the currency markets Thursday, the U.S. dollar rose against other major currencies, with the dollar index gaining 0.4% to 80.90.
The Japanese yen retreated and traditionally high-yielding currencies rebounded following a modest revival in risk appetite, analysts said. See Currencies.
Also on the Globex, December silver fell 8 cents to $11.69 an ounce, while January platinum futures soared $26.90, or 3%, to $1,039 an ounce.
December palladium gained $3.30 to $203 an ounce and December copper futures added 4 cents to $2.39 a pound.
