Gold slipped back in late trading on Monday to end the day below the $730 level which it had been testing since Friday. This seems mostly to have been on profit taking, a slightly better dollar/euro rate and a falling back in the oil price, although it seems that sentiment remains bullish for gold and bearish for the US dollar.
Reuters quotes Tatsua Kageyama, a Japanese gold analyst at Kanetsu Asset Management as saying "The pitch of the rise has been too fast. Gold has been overbought and it's about time to see a major correction." But he went on to say that underlying sentiment was strong due to the poor dollar outlook and the possibly weakening US economic outlook.
