Gold falls in London as rally to two-month high sparks sales
Wednesday, 5 August 2009
LONDON, Aug. 4 (Bloomberg): Gold fell for the first time in four days in London as some investors sold the metal to lock in gains from its rally to the highest in almost two months.
Bullion for immediate delivery reached $962.51 an ounce yesterday, the highest since June 10, as the US Dollar Index slipped to its lowest level since September, boosting the metal's appeal as an alternative investment. The index, a six- currency gauge of the greenback's strength, was little changed today after a three-day drop.
"The metal is trading lower on further profit-taking," James Moore, an analyst at TheBullionDesk.com in London, said in a note. Gold "is likely to struggle to push significantly above $965, as scrap flows are expected to pick up, and will be reliant on a weak dollar to fuel further gains."
Immediate-delivery bullion lost $4.60, or 0.5 per cent, to $952.20 an ounce by 9:28 a.m. in London. December gold futures fell 0.5 per cent to $954.20 an ounce on the New York Mercantile Exchange's Comex division.
Spot prices added 3 per cent last month as the dollar index lost 2.2 per cent. Gold typically moves inversely to the US currency. The MSCI World Index of shares was little changed today after earlier touching a 10-month high.
Gold's price is "too high" given weak physical demand, firming equities and low inflation and may undergo a correction, Eugen Weinberg and other analysts with Commerzbank AG wrote in a note yesterday.
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged at 1,072.9 metric tons yesterday, the company's Web site showed. The fund reached a record 1,134.03 tons on June 1.
Silver for immediate delivery in London fell from a seven- week high, losing 1.2 per cent to $14.10 an ounce. Platinum slid 1 per cent to $1,223.90 an ounce after yesterday climbing to the highest since June 15. Palladium dropped 0.8 per cent to $270.40 an ounce after rising to $275, matching yesterday's 11-month high.
Bullion for immediate delivery reached $962.51 an ounce yesterday, the highest since June 10, as the US Dollar Index slipped to its lowest level since September, boosting the metal's appeal as an alternative investment. The index, a six- currency gauge of the greenback's strength, was little changed today after a three-day drop.
"The metal is trading lower on further profit-taking," James Moore, an analyst at TheBullionDesk.com in London, said in a note. Gold "is likely to struggle to push significantly above $965, as scrap flows are expected to pick up, and will be reliant on a weak dollar to fuel further gains."
Immediate-delivery bullion lost $4.60, or 0.5 per cent, to $952.20 an ounce by 9:28 a.m. in London. December gold futures fell 0.5 per cent to $954.20 an ounce on the New York Mercantile Exchange's Comex division.
Spot prices added 3 per cent last month as the dollar index lost 2.2 per cent. Gold typically moves inversely to the US currency. The MSCI World Index of shares was little changed today after earlier touching a 10-month high.
Gold's price is "too high" given weak physical demand, firming equities and low inflation and may undergo a correction, Eugen Weinberg and other analysts with Commerzbank AG wrote in a note yesterday.
Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, was unchanged at 1,072.9 metric tons yesterday, the company's Web site showed. The fund reached a record 1,134.03 tons on June 1.
Silver for immediate delivery in London fell from a seven- week high, losing 1.2 per cent to $14.10 an ounce. Platinum slid 1 per cent to $1,223.90 an ounce after yesterday climbing to the highest since June 15. Palladium dropped 0.8 per cent to $270.40 an ounce after rising to $275, matching yesterday's 11-month high.