Gold Drops on Take Profit Sales

Gold futures fell as a rally to a three-month high yesterday spurred selling.

Gold will probably trade in a range of $150 an ounce this year, as opposed to about $500 last year and $300 in 2012, said Bernard Sin, head of currency and metal trading at bullion refiner MKS (Switzerland) SA in Geneva. Prices yesterday climbed to the highest since Nov. 8 on speculation U.S. stimulus will boost the appeal of the metal.

“In the long-run, gold will behave like the euro, trading in a very narrow range,” Sin said by e-mail. “Speculative buying has been exhausted, and physical selling is kicking in.”

Gold for delivery in April dropped 0.2 percent to $1,292.10 an ounce by 6:26 a.m. on the Comex in New York after trading yesterday at $1,296.40. Volume was 15 percent below the average of the past 100 days at this time and silver futures were 16 percent behind, according to data compiled by Bloomberg.

Bullion for immediate delivery rose 0.1 percent to $1,292.60 an ounce in London.

via Bloomberg

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