Gold Loses Momentum as Sentiment Wobbles
Source: Reuters, Rebekah Curtis and Humeyra Pamuk (11/13/09)
"The only thing that seems likely to puncture this (gold's rally) would be a reversal in the dollar."
The precious metal held above key support at $1,100 an ounce, but the recent rally was starting to look tired after a succession of record highs. The market hit a record $1,122.85 on Thursday due to a bearish prognosis for the dollar.
Spot gold was at $1,104 per ounce at 1503 GMT, compared with a last quote of $1,103.60 late in New York on Thursday.
"It has run out of steam after getting above $1,120 an ounce yesterday," said Tom Kendall, precious metals strategist at Mitsubishi.
"No one really wants to get longer at these levels. There's some profit taking in there and some people are calling an interim top and trying to short the market as they see dollar coming back a touch," Kendall said.
"The only thing that seems likely to puncture this (gold's rally) would be a reversal in the dollar," Stephen Briggs, a commodities strategist for RBS in London, said.
Bullion gained 4.9 last week, posting its biggest weekly rise since late April. Year to date, it is up by around 26%.
U.S. gold futures for December delivery were down by 0.14% at $1,105 per ounce. They hit a record high of $1,123.40 on Thursday.