Gold Falls in London Trade as Investors Sell After Price Gain...

Gold Falls in London Trade as Investors Sell After Price Gain

Jan. 19 (Bloomberg) -- Gold fell in London as one-week high prices spurred some investors to sell, and as a decline in crude oil reduced the metal’s appeal as an inflation hedge.

Bullion climbed 3.1 percent on Jan. 16, the biggest gain in more than a month, as a weaker dollar boosted demand for gold as an alternative investment. Oil declined today on forecasts faltering global economic growth will drive down fuel demand.

“Some profit taking has been evident this morning,” James Moore, an analyst at TheBullionDesk.com in London, wrote today in a note. “We remain bullish towards gold from both a fundamental view and belief investors will look to further diversify their portfolios, again turning towards the safe-haven assets.”

Gold for immediate delivery lost as much as $6.41, or 0.8 percent, to $836.74 an ounce and traded at $840.75 an ounce by 8:53 a.m. in London. February futures were little changed at $840.20 in electronic trading on the Comex division of the New York Mercantile Exchange.

The metal may rise this week on speculation that the dollar will slide. Eighteen of 32 traders, investors and analysts surveyed from Mumbai to Chicago advised buying gold. Ten said to sell, and four were neutral.

Among other metals for immediate delivery in London, silver declined 0.2 percent to $11.245 an ounce. Platinum gained $17.50, or 1.8 percent, to $966.50 an ounce, and palladium was 1.1 percent higher at $183.50 an ounce.

To contact the reporter on this story: Nicholas Larkin in London at [email protected]

Last Updated: January 19, 2009 04:07 EST


My View
Just a little profit taking.
Gold is at the same level now as it was trading today.
Came down from $845 in London now trading at $837. Just about to hit america.
There was strong buying in gold stocks yesterday on the asx and would think there should be some strong demand tomorrow, if the djia is strong.