Gold futures on the COMEX Division of the New York Mercantile Exchange on Wednesday settled lower, as investors cashed in their gold holdings to alleviate fund dry-up amid wide concerns over global economic prospect.
The most active gold contract for Dec. delivery declined 6.5 U. S. dollars, or 0.4 percent, to 1,695.9 dollars per ounce.
Market analysts said that global investors continue to liquidate their positions in gold and silver in order to accumulate cash.
Gold has tracked the movement of stocks and other commodities in recent trading, unable to spur much safe-haven buying interest as investors have parked their money in cash amid the global turmoil or fled to the dollar and bonds.
Meanwhile, the rally in U.S. dollar added to the negative tone on the metal market. The dollar index on Wednesday hiked more than one percent to trader around 79. Euro even slumped to the lowest level in six weeks on disappointing Germany bond auction.
Besides, on the eve of the Thanksgiving holiday in the U.S., it is likely that buyers will wait until next week before they get back to gold, said a trader.
Silver for Dec. delivery lost 1.067 dollars, or 3.2 percent, to 31.884 dollars per ounce. Platinum for Jan. delivery also declined 12.7 dollars, or 0.8 percent, to 1,558.3 dollars per ounce.
