LONDON—Spot gold prices pulled back a day after hitting their highest level in three months.
The move occurred despite a steady exchange rate between the dollar and the euro, which suggests that the selling was driven by investors who believe gold has peaked in the near term after racking up big gains over the past two weeks, analysts said.
"I think some guys are starting to think it's overcrowded and are profit-taking," said Standard Bank analyst Walter de Wet.
Spot gold recently traded at $1,152.93 a troy ounce, down 0.2% on the day. Gold hit a high of $1,169.67/oz on Monday.
A pick-up in sales of scrap gold since gold prices rose above $1,150/oz last week has also weighed on gold, Mr. de Wet said. "For the first time in a couple of months, we're seeing decent scrap levels coming into the market."
Others attributed gold's weakness to the European Union's agreement on a loan facility for Greece, as it cooled investor demand for safe havens such as gold.
Gold in euro terms fell more than gold in dollar terms, a senior trader in London said. "People in the short term [have] slightly improved sentiment after the meat was put on the bones of the Greek [aid package]."
