Gold News

Gold slips back on profit-taking

Gold was one of many commodity prices to experience a drawback today (November 12th) as oil prices fell away and the value of the dollar rose.

Prices fell away from last week's $845 high and Friday's close at above $830, slipping back below the $815 mark this morning but refusing to sink below $800 per ounce.

Flocking to buy gold over recent weeks, investors have responded to factors making the precious metal an unmissable safe haven investment, but today's reversal came in reply to a turnaround in the oil price, whose trail gold often follows.

US light crude oil for December delivery slipped away from its record high of $98.62 from last week to reach around $95 a barrel, on the back of indications from OPEC that output could potentially be increased.

Ashok Shah, chief investment officer at fund manager London and Capital, told the Guardian that a bout of profit-taking for bullion investors was inevitable once the oil price kicked back and profit-taking opportunities emerged.

Summing up the current market atmosphere, he said: "There were very juicy gains to be booked and the traders can't normally resist when there are big gains on the table."


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