NEW YORK/LONDON: Gold ended lower as choppy stock markets prompted liquidation across all asset classes, traders said. Spot gold was at 734.25, down 0.2% from Monday's close $735.90 an ounce. Bullion has lost nearly 30% in value since hitting a record of $1,030.80 in March. US gold futures for December delivery settled down $9.30, or 1.3%, at $732.70 an ounce on the COMEX division of the New York Mercantile Exchange. "The bullish story on gold based on fears of inflation is dead," Jesper Dannesboe, senior commodity strategist at Societe Generale, said. "Because now it is disinflation and even deflation. With the oil prices going down the way they are it is very difficult to hold onto long gold positions unless the dollar was to collapse, which is not the case."
A precious metals broker in New York said gold was stuck in a broad range between $680 to $780. "We are just seeing a flight from all asset classes in general, including the gold market," he said. Silver was at at $9.54, up 2.9% from Monday's finish of $9.27 and palladium fetched $211.00, down 1.6% from its previous close of $214.50.
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