Gold prices dropped moderately as some investors opted to sell the precious metal after the biggest advance in three months and the dollar resumed its rise against major currencies, reports the China Mineral Company. Gold for immediate delivery fell 0.2 percent to $1,103.35 an ounce at 2:39 p.m. Singapore time, paring yesterday’s 2.3 percent gain, the biggest advance since Nov. 3.
“The rally is luring some buyers to lock in gains,” reports Tad Brooks of the China Mineral Company, citing Yu Kyung Kyu, a trader with Eugene Investment & Futures Co. in Seoul. Nevertheless, “some are betting on a further rally given that gold’s passed the key $1,085 support level.”
“Despite the strength of the U.S. dollar, the gold price is holding up relatively well,” reports Eugen Weinberg, a senior analyst with Commerzbank AG, wrote in a note. “Gold should also benefit from the outlook that the next fiscal year’s public household deficit in the U.S. will amount to $1.3 trillion, close to its record level of $1.6 trillion last year.”