The gold price was trading down below $900 today having dropped to similar levels yesterday as investors moved to take profits following its recent outperformance. By mid-afternoon, the price of a troy ounce was $898, from an opening level of $895.8, with early gains eradicated as selling continued. It follows a sharp fall yesterday when the precious metal fell from $921.2 to a low of $890.3, which market watchers said was the result of a sell-off as investors looked to lock-in gains at current levels. Brooks Macdonald's investment manager, Edward Channing, said people were banking profits at present, adding there was also a seasonal impact taking place. Channing said: 'There is profit taking at these levels, and there is a seasonal fall-off as well which usually takes place between Mid-March through to May.' He added investors could also be reacting to better news from banks earlier in the week - notably from Citigroup in the US which announced it had been profitable so far in 2009, while flagging jewellery demand and economic problems in India - the main purchaser of jewellery - was also cited as an issue. The commodity has experienced something of a sharp sell-off in recent weeks - shedding over 10% of its value from highs seen in February when it rose above $1,000 an ounce. In the last year the price has fluctuated greatly, falling from highs last March of $1,002 an ounce to a low of $733 in October, before the recent recovery.

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