Lock in Profit - Push Gold Price Down

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LONDON, July 17 (Reuters) - Gold drifted lower on Monday after hitting a two-month high on the Middle East tension, as many investors took the opportunity to lock in profits from the current price rally.
"We are little bit overdone on this now and people are going to start disassociating themselves (from the tension). We are going to see more profit-taking," said a precious metals trader in London.
At Monday's high, gold was nine percent higher from a week ago.
Safe-haven gold buying had picked up in early trade as Israel bombarded Lebanon for a sixth day on Monday and dismissed as premature a proposal for an international stability force to help end the worst fighting across the Israeli-Lebanese border in more than 20 years
"Most of it (Middle East tension) has been factored in. Of course if we see any escalation in the tension, then you can see some additional buyingmw801ing through," said Michael Widmer, analyst at Macquarie Bank.
Gold also came under pressure because of a rally in the dollar that rose one percent against European currencies and hit a three-month high versus the yen.
A stronger U.S. currency makes dollar-priced gold costlier for holders of other currencies and lower demand for the metal.
Oil prices fell in volatile trading on Monday, but were not far from record highs.

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BY  在 2006-7-18 00:28 發表:

LONDON, July 17 (Reuters) - Gold drifted lower on Monday after hitting a two-month high on the Middle East tension, as many investors took the opportunity to lock in profits from the current price  ...

Referring to the above article, I think the main reasons to push gold to below 650 this afternoon and evening are "Profit Taking & Strong Greenback".  Thus I think gold will rebound soon once this curve of movement ismw801pleted since the basic element for pushing gold higher remains intact.  My personnal view only,mw801ments from others are wemw801e.