NEW YORK (MarketWatch)
Gold futures fell early Thursday as traders scrambled to assess the news of a thwarted plot to blow up airlines en route from the U.K. to the U.S. that sent oil and stock futures lower. "We are puzzled as traders this morning with gold lower as it should be up big," said Kevin Kerr, editor of Global Resources Trader, a newsletter published by MarketWatch. "The news is coming in so fast and furious that traders are almost in shock and are getting thir bearings and deciding what to do next." Kerr said he expects gold to rally once the gravity of the situation has set in. "We see $700 gold as a major possibility should these events escalate."

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