Gold recoiled after tapping a new record on Thursday, tumbling more than 2 percent as an equities rebound and higher trading margins fanned profit-taking from the biggest rally since 2008. Prices fell by as much as $82 from a new overnight record of $1,813.79 in one of the biggest daily swings ever. Yet analysts showed no sign of revising their bullish view of gold, up nearly 20 percent since June as investors seek safe havens amid global debt crises and a darker economic outlook.
The spot price for bullion fell 1.7 percent to $1,763 an ounce by 4:44 pm EDT (2044 GMT), reversing Wednesday's sharp gains. It recovered from a session low $1,732.10. Gold futures fell 1.8 percent to settle at $1,749.90 an ounce. The intraday trading range of over $80 an ounce was the third-widest in Reuters data going back to 1983. Tuesday's range was the sixth-biggest ever. Implied volatility for the biggest exchange-traded fund, the SPDR GLD, pulled back slightly from Wednesday's 2-1/2-year high.
COMEX gold trading volume cooled after Tuesday's record-breaking 437,000 lots, with nearly 340,000 lots changing hands - still 50 percent more than the 30-day average. Silver held up better than bullion, falling only 1.5 percent to $38.70 an ounce as it drew some benefit from equity gains that suggested a less-grim economic outlook.