US gold futures ended a touch lower on Wednesday, limiting losses in spite of plunging stock markets and widespread decline in commodities as investors turned to gold as a safe store amid fears of a global recession, traders said.
December gold settled down 50 cents at $US839.00 an ounce on the COMEX division of the New York Mercantile Exchange.
December futures ranged from a low of $US833.10 to a peak of $US859.20.
Gold accelerated gains on fresh buying and short covering due to the weaker stock markets - COMEX floor trader.
Gold could still hit $US1000 by the end of this year due to a disconnect between record demand for physical bullion products and weaker gold futures on long liquidation - Greg Orrell, portfolio manager of the $US100 million OCM Gold Fund.
Sharp rise in gold lease rate suggested banks might have tapped into the fluid gold market for additional liquidity - Orrell.
Trading volume in the gold market has slowed as recent huge volatility, marked by the $US100 an ounce intraday range on October 10, hurt gold's appeal as a safe haven - John Reade, head of UBS commodity strategy.
UBS says gold could hit $US925 in one month and $US975 in three months because of financial market panic, but UBS held its average 2009 price target at $US825 due to a stronger dollar and the risk of deflation.
Investor demand remained strong as bullion holdings by SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained near a record despite a slight drop to 767.58 tonnes as of October 14.
Gold held on to gains in spite of sharp decline of crude oil and a near 5% drop in the broad-based commodity Reuters/Jefferies CRB index.
