Gold News & Info

Source: Bloomberg

New York— Gold prices fell on bets that a rally to a one-week high was overdone. The metal reached $1,239.50 an ounce, the highest price since June 9, amid European sovereign-debt concerns. Gold has climbed 12 percent this year, reaching a record $1,254.50 on June 8. �Gold has trouble at these higher prices,� said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. �Gold doesn�t want to go over $1,250, and it doesn�t want to go under $1,210.� Gold futures for delivery in August fell $3.90, or 0.3 percent, to $1,230.50 on the Comex in New York. The price is down 1.9 percent from the all-time high.

The metal may be too expensive to attract new investors, some analysts said. �We favor standing aside in gold until prices fall toward technical support in the $1,198 to $1,210 range,� said Tom Pawlicki, an analyst at MF Global Holdings Ltd., a broker in Chicago. Europe�s fiscal woes will spur a rebound in gold, analysts said. The euro may drop to the lowest level since 2003 on Europe�s debt crisis, Sophia Drossos, a co-head of global currency strategy at Morgan Stanley, said today in an interview with Tom Keene on Bloomberg Radio. Gold denominated in euros, Swiss francs, and the U.K. pound also rose to records this year. �All the buying has been out of Europe,� Kaplan said. �Europeans know the debt crisis is not going away, and they�re buying gold to protect themselves from a decline in the euro.� See full story.