Gold News

Gold 'takes a breather'

Gold prices fell slightly today as investors decided to cash in on the recent astronomic rises in prices of the commodity, rather than to buy gold.

New York trade on Friday saw the metal soar above $760 per ounce and solidify well above that psychological barrier, but profit-taking early today on London markets brought the price down to around the $757 level.

A G7 meeting at the weekend was hoped to bring stability to the economy and ease fears of a Middle East flare-up over Kurdish-Turkish tussles on the north Iraqi border, but overall outlooks still seem uncertain.

Worries over crude prices were indeed mitigated today as the price fell away from its unprecedented $90 pedestal, with the slight fall in crude prices easing worries over fuel price hikes across the board and subsequently easing gold prices.

Supply issues for crude remain worrying, however, with economic indicators over jobs and investment remaining troubling for the US economy.

Considering the continuation of economic worries, Barclays Capital analyst Suki Cooper told Forbes.com that cashing in on gold proceeds could soon give way to new safe-haven incentives to buy gold.

"The drivers remain very positive for gold so we could just be seeing some short-term profit-taking," Ms Cooper said.

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