Gold futures reported a heavy decline on Thursday despite its safe haven status and increased demand for the third quarter. Gold futures contract for December delivery plunged 3.1 percent or $54.10 to settle at $1,720.20 per ounce on the Comex trading or the New York Mercantile Exchange.

Many analysts were of the opinion that gold rallied enough and now the correction was overdue. Portfolio manager, James Cordier from Optionsellers.com in Florida commented, Risk is off the table and gold has had a nice run, in that environment, a sneeze is pneumonia.”

Moreover the US dollar also appreciated on positive economic data which minimized gold’s attraction as a safe haven. The dollar index DXY which tracks the US dollar’s movement versus its six major counterparts gained to 78.272 on Thursday as compared to 78.261 on Wednesday’s North American trading session.

In terms of gold’s global demand, the precious metal stands strong. As per latest data of the World Council, gold demand for the third quarter surged 6 percent as compared to same period last year. Among other base metals, silver futures contract for December delivery fell $2.33 to settle at $31.50 per ounce. Copper futures contract for December delivery declined $0.10 to $3.38 per pound at NYMEX.

Platinum futures contract for January delivery declined 3.1 percent or $50.10 to settle at $1,581.10 per ounce while its sister metal palladium futures contract for December delivery fell 7.8 percent or $50.75 to $603.70 per ounce.