Gold Bulls Take a Breather

Updated from 2:51 p.m. EST

Gold, coming off a big rally in the previous session, edged lower Thursday as recent volatility kept anxious investors waiting in the wings.

April-dated bullion contracts slipped $1 to $683 an ounce on the Comex division of the New York Mercantile Exchange.

The bullion exchange-traded funds, streetTracks Gold Shares (GLD Quote) and iShares Comex Gold Trust (IAU Quote), were down 0.2%.

"The higher volatility certainly made some nervous money stay on the sidelines," says Jon Nadler, an analyst at Montreal bullion dealer Kitco. "The small investors are dazed."

Prices fell Tuesday, but rebounded Wednesday to settle $23 up at $684. Many market watchers expect significant gyrations to continue.

New economic data showing higher-than-expected unemployment claims failed to undermine the greenback, with one dollar recently buying 121.58 yen, up from 120.88 yen late Wednesday. The euro was recently trading at $1.312 down from $1.314.

The real gold market action was focused on the miners, where a slew of earnings reports were dominating the news.

Industry stalwart Newmont Mining(NEM Quote) reported a fourth-quarter profit of 50 cents a share, beating consensus forecasts of 40 cents, and up from 12 cents the year before. However, the company cautioned that 2007 sales would likely decline and costs would rise.

Even so, the shares rose 1.6%.

Barrick Gold(ABX Quote) reported earnings of 48 cents a share, in line with expectations, but up from 32 cents a year earlier.