Metals - Gold edges lower as dollar recovers slightly

BY

Gold fell to 655.50 usd, its lowest since Feb 8, as speculation Iran might resume negotiations over its nuclear programme sparked profit taking among short term investors.

At 4.54 pm, spot gold was quoted at 657.65 usd an ounce, down more than 13 usd from the 670.95 usd level seen in late New York trades yesterday.

'Bullion prices headed for a U-turn on Tuesday morning (in the US) on news that Tehran might follow Pyongyang to the nuclear negotiation table,' said co analyst Jon Nadler.

One day ahead of a UN Security Council deadline, Mahmoud Ahmadinejad said it was no problem for Iran to halt enrichment, but that 'fair talks' demanded a similar gesture from the West.

The news weighed on oil, especially as it came alongside expectations the cold temperatures in the US are set to moderate, thereby reducing demand for heating fuels.

'We could have almost absorbed oil, Tehran, and dollar related news but we could not neglect the fact that gold had been overbought and fickle money looked for profit I mean that's why they in the game,' said Nadler.

Lower oil prices pressure gold as they lessen its appeal as a store of value or inflation hedge. Receding geopolitical tensions do the same, lessening the metal's appeal as a safe haven asset.

Gold also moves counter to the dollar as it is seen as an alternative asset to the US currency.

At the start of trade in Europe today, gold edged lower as the dollar recovered slightly after falling to five week lows against the euro in Asian trade.

Yesterday, the metal touched a fresh 7 month high of 673.15 usd.

迷茫之鍊金術士

BY  在 2007-2-21 04:56 PM 發表:

Gold fell to 655.50 usd, its lowest since Feb 8, as speculation Iran might resume negotiations over its nuclear programme sparked profit taking among short term investors.

At 4.54 pm, spot gold  ...

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