MW: Gold futures flat as traders eye market uncertainty
Other metals contracts move lower in early dealings
By Moming Zhou, MarketWatch
NEW YORK (MarketWatch) -- Gold futures pivoted between gains and losses early Thursday, indicating another choppy session as nervous investors took a wait-and-see attitude.
Gold trading has largely stayed in a narrowed range around $840 an ounce for several days. Analysts had expected demand for the precious metal to increase as a safe haven amid the financial turmoil, but gold had closed lower in the previous five straight sessions.
"Nervousness was the main feature among participants," said Jon Nadler, senior analyst at Kitco Bullion Dealers.
"For the moment, the weight of the deep funk felt in the global markets is keeping gold on the defensive, while would-be buyers ... find more comfort sitting on the piles of cash," he added.
Gold for December delivery was last up 50 cents at $839.50 an ounce. The contract's surrenedered nearly $70 an ounce over the previous five sessions.
Stock markets in Europe and Asia recorded sharp losses overnight, while U.S. stock futures showed modest signs of a rebound after Wednesday's big slump. See Indications.
"Investors worldwide are selling everything, including the kitchen sink, and gold is no exception," said Peter Grandich, chief commentator at Agoracom, an online marketplace for the small-cap investment community.
Key U.S. economic data released on Thursday showed retail-level inflation under wraps. See Economic Report.
Some analysts worried that in the long term, the global rescue plans to inject liquidity into the market will stir inflation -- something that would be bullish sign for gold prices as investors tend to buy the metal as a hedge against rising prices.
In other early metals action, December silver rose slightly to $10.19 an ounce.
Copper for December delivery dropped 1.7%, skidding back to $2.1720 a pound. January platinum retreated 4.4% to $932 an ounce, and December palladium dropped 5.4% $185 an ounce.
In spot trading, the London gold-fixing price -- used as a benchmark for gold for immediate delivery -- stood at $834.50 an ounce Thursday morning local time, down $12.50 from Wednesday afternoon.
