LONDON (Thomson Financial) - Gold edged off yesterday's historic high as the dollar rebounded slightly against the euro and as oil prices steadied at slightly lower levels after touching all-time records yesterday.
'Given the recent price surge gold is vulnerable to a profit-taking correction,' said TheBullionDesk.com analyst James Moore.
He added, however, that with the likelihood of further dollar weakness and with no improvement in the geopolitical backdrop, he remains 'bullish towards gold' and expects a push towards 900 usd an ounce near term.
At 9.35 am, gold was trading down at 859.35 usd an ounce against 865.80 usd in late New York trade yesterday, when the precious metal hit an historic peak of 869.05 usd.
Gold tends to benefit from rising oil prices as it is bought as a hedge against oil-led inflation. It also moves counter to the dollar, because it is seen as an alternative currency or asset.
With the dollar edging up slightly against the euro today ahead of this afternoon's payrolls data, and with oil easing off its 100 usd peak, gold is under slight pressure.
Elsewhere platinum was up at 1,545 usd per ounce against 1,540 usd yesterday, when it hit a historic high of 1,553.50 usd an ounce.
Analysts said the metal remains supported by tight fundamentals as well as a weak dollar outlook and general positive sentiment towards the commodities sector as a whole.
Palladium, meanwhile, was flat at 369 usd while silver was down at 15.17 usd against 15.24 usd. maytaal.angel@thomson.com ma/ak COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
