By Moming Zhou, MarketWatch NEW YORK (MarketWatch) -- Gold futures fell for a fourth day Friday, heading for their biggest weekly loss in at least 28 years, as a sharply rising U.S. dollar and fund liquidations continued to pound broad commodity markets. Copper and platinum also fell. Gold's losses came amid sharp losses in global stock markets. Meanwhile, crude-oil futures slumped more than 4% as OPEC's production cuts failed to ease concerns that the global economic slowdown is dampening oil demand. Gold for December delivery fell $11.20, or 1.6%, to $703.50 an ounce on the Comex division of the New York Mercantile Exchange. It dropped to $681 earlier, the lowest level since September, 2007. Gold has fallen 11% this week, the biggest weekly percentage loss since at least 1980, when trading data first became available on the Comex. The precious metal has fallen in 11 out of 12 sessions since Oct. 8. "Bearish sentiment [in the gold market] remains at extreme levels and all notions of fundamental value are being thrown out the window as the financial crisis morphs into a global economic crisis," said Mark O'Byrne, executive director at Gold and Silver investment. Gold is often seen as an investment safe haven whose prices tend to rise when the economy falls into troubles, but its recent slumps have defied conventional wisdom. Analysts pointed to fund liquidation and a sharply rising dollar as major reasons for slumps in gold prices. See related story. The dollar gained against most other currencies, with the British pound extending already steep losses after third-quarter U.K. gross domestic product shrank more than expected. A rising dollar reduces gold's appeal as an investment alternative. See Currencies. In exchange-traded funds, gold in the SPDR Gold Trust, the largest gold ETF, stood at 747.06 tons Thursday, down 8.58 tons from the previous day, according to the latest data from the fund. Gold at SPDR hit record high of 770.64 tons on Oct. 10. In spot trading, the London gold-fixing price -- used as a benchmark for gold for immediate delivery -- stood at $692.50 an ounce Friday morning local time, down $27.50 from Thursday afternoon. Elsewhere, December copper dropped 6.4% to $1.6885 a pound. It fell to $1.656 earlier, the lowest level since September, 2005. The metal has dropped 44% so far this year, heading for the biggest yearly percentage drop since 1988, when trading data first became available on the Nymex. Copper is heavily used in cars, homes and appliances and is seen as an economic barometer. See Commodities Corner. January platinum fell 3.6% to $783.50 an ounce, December palladium fell % to $171 an ounce, and December silver fell 6.7% to $8.865 an ounce.

Source