Gold may drop on sales after rally to record
Azerbaijan, Baku, April 11 / Trend /
Gold may decline in New York as some investors sell the metal following its rally to a record and after the African Union said Libyan leader Muammar Qaddafi agreed to a cease-fire, Bloomberg reported.
"Profit-taking has emerged" and "a further pullback could be seen" on news that Qaddafi accepted a peace proposal, James Moore, an analyst at TheBullionDesk.com in London, said in a report to clients today. Still, "ongoing concerns of European Union debt, low interest rates and ongoing inflation concerns are bullish" for gold, he said.
Gold futures for June delivery fell $3.10, or 0.2 percent, to $1,471 an ounce at 7:59 a.m. on the Comex in New York. Prices earlier today gained as much as 0.3 percent to an all-time high of $1,478. The metal for immediate delivery in London was down 0.3 percent at $1,470.05 after reaching a record $1,478.18.
Bullion was unchanged at $1,469.50 an ounce in the morning "fixing" in London, used by some mining companies to sell output, from the afternoon fixing on April 8.
Gold held in exchange-traded products rose 19.98 metric tons to 2,049.15 tons on April 8, the highest level since Jan. 24, data compiled by Bloomberg from 10 providers show.