Gold Eases But Long-Term Still Bullish

Source:

"We had a terrific move on the upside and the market got itself long. I think people are beginning to take profits," said David Holmes, director of precious metals sales at Dresdner Kleinwort.

Gold slipped on Tuesday as investors took profits from its recent rally to 28-year highs, but overall sentiment stayed bullish due to dollar weakness.

A decline in oil prices from last week's record highs also weighed on the metal, which has jumped 16 percent or about $100 an ounce so far this year.

Spot gold fell as low as $722.30 an ounce before recovering to $729.30/730.00 by 1347 GMT, still down from $731.70/732.50 in New York late on Monday and off Friday's high of $739, the highest since January 1980.

"We had a terrific move on the upside and the market got itself long. I think people are beginning to take profits," said David Holmes, director of precious metals sales at Dresdner Kleinwort.

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