Gold fell 1 percent on Wednesday after the U.S. dollar bounced against the euro and prompted selling from investors, whose appetite for safe-haven assets was somewhat restored after bullion regained $800 an ounce. Gold rallied to a six-week high around $830 on Tuesday after the Federal Reserve announced a new program to support consumer debt securities, but profit taking erased some of the gains.
The price has rebounded more than 19 percent since hitting a 13-month low of $680.80 in October but it is still below a record of $1,030.80 hit in March. The dollar edged up against the euro as skepticism lingered over whether the latest U.S. measures to boost consumer lending would ease concerns about the financial crisis. Weaker equities also prompted some investors to cash in gold to cover losses. But some analysts said gold could find support around the current levels on demand from investors.
The price has rebounded more than 19 percent since hitting a 13-month low of $680.80 in October but it is still below a record of $1,030.80 hit in March. The dollar edged up against the euro as skepticism lingered over whether the latest U.S. measures to boost consumer lending would ease concerns about the financial crisis. Weaker equities also prompted some investors to cash in gold to cover losses. But some analysts said gold could find support around the current levels on demand from investors.
Finotec Analysis Team
26 November 2008
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