Gold slumps after profit-taking

Gold decreased on the early trading as investors took profit and as oil prices corrected to lower levels
Joana Fonseca 20 June 2008

Gold decreased on the early trading as investors took profit and as oil prices corrected to lower levels; Gold traded at $903.90 an ounce at 8:00am GMT. Gold slightly slumped on the early trading, after it had reached $909.40 on Monday, as demand for a hedge against inflation was diminished by a decrease in oil prices. According to technical indicators, “a break now back below $886 will refocus the market back to the downside”, said Stephen Malyon, strategist at Scotia Capital Inc. in Toronto. “Above $909 opens up May's high of $935.”
Finotec Analysis Team20 June 2008