Baku – APA-ECONOMICS. Gold dropped, ending a four-day rally, on speculation investors will sell holdings after bullion neared a key resistance level, Bloomberg reports.
Gold declined as much as 0.3 percent after reaching $970.47 yesterday, the highest level since June 5. The advance may stall before it reaches so-called resistance at $972 an ounce, Commerzbank AG said in a note yesterday, citing trading patterns. Resistance levels are where sell orders tend to be clustered.
Gold held in the exchange-traded funds slipped to 52.25 million ounces last month, from 53.7 million ounces in June, Reade said.
Some of the decline “appears to have been related to investors switching out from ETFs into physical gold,” Reade said. “Strong asset market performance and increasing risk appetite may have also triggered some profit taking.”
Among other precious metals for immediate delivery, silver was little changed at $14.62 an ounce, platinum was down 0.2 percent at $1,267.50 an ounce and palladium gained 0.8 percent to $279.75.
