Gold Crashes to $1,267.52/Ounce on Profit Taking

Gold

Precious Metal,  Gold, on Tuesday, August 1, dropped from the highest levels in almost seven weeks as the dollar rose and investors locked in profits from bullion’s rally last
month.

Spot gold dipped 0.1 percent to $1,267.52 per ounce by 0945 GMT. It rose 2.2 percent last month, its biggest monthly gain since February.  U.S. gold futures for August were unchanged at $1,266.60 per ounce.

“In the short term there are technical indications that gold is overstretched, and when we’ve had a move of nearly three weeks of straight gains there’s danger of profit taking,” said analyst Jonathan Butler at Mitsubishi in London.

At its peak on Monday, gold had gained about $66 since rebounding from a near four-month low of $1,204.45 on July 10.

Gold is often used as an alternative investment during times of political and financial uncertainty.

Investors are also looking ahead to the U.S. non-farm payrolls data later this week and how that will affect the dollar, according to Ronald Leung, chief dealer at Lee Cheong

In other precious metals, silver rose 0.1 percent to $16.79 per ounce. It hit an over one-month high in the previous session and rose 1.3 percent in July.

Palladium gained 0.6 percent to $888.50 per ounce, after it hit a near seven-week high of $897.05 in the previous session, Reuters reports.

It jumped almost 5 percent in July.  Platinum climbed 0.6 percent to $941.40 per ounce,
after rising to $943.80, the highest since June 14. It rose almost 5 percent in July, in what was its first monthly gain since February.

 

 

 

 

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