RE: Gold just touched $1100.Look at what this moron wrote yesterday. Too funny...
Gold falls on investor disappointment, eyes $1,100
By Frank Tang and Jan Harvey
NEW YORK/LONDON (Reuters) - Gold slipped on Thursday, retreatingfrom a record high it hit last session as disappointment over themetal's failure to breach $1,100 an ounce prompted investors to cash insome gains.
Gold's strength despite a relatively firm dollar this week suggeststhat bullion could be driven by other factors, such as renewed interestamong central banks and inflation worries.
"The gold market has de-coupled itself from the dollar for the time being," said George Nickas, commodities broker at FC Stone.
On Tuesday, gold rallied $30 in the face of a broadly higher dollar,largely driven by improved sentiment after India's purchase of 200 tonsof bullion from the International Monetary Fund.
Yet, analysts warned of possible short-term pullbacks in overbought market conditions.
"The market has run out of steam as we end the week. This market hasto do some backing and filling to justify at these levels," Nickas said.
Spot gold was at $1,088.95 an ounce at 2:08 p.m. EST (1908 GMT),against $1,092.35 late in New York on Wednesday, when the preciousmetal hit a record high of $1,097.25 an ounce.
U.S. December gold settled up $2 at $1,089.30 an ounce on the COMEX division of the New York Mercantile Exchange.
Further gains were capped after the metal failed to decisively break above $1,100 an ounce.
"The fact that we didn't manage to go through $1,100 might lead someinvestors to reconsider their positioning in the sector," saidCommerzbank analyst Eugen Weinberg.
"Should the dollar become stronger over the coming days I wouldexpect to see more profit taking," he added. "I think... we will see aprolonged correction, because the trend of the last few weeks isbecoming a bit too pronounced."
Friday's U.S. October non-farm payrolls data could give a clear direction to the dollar and set the tone for the gold market.
CENBANKS EYED
Speculation continued over the prospect of further central bank goldacquisitions, after India's purchase of 200 tons of bullion from theInternational Monetary Fund on Monday. The report helped push gold torecord highs.
Sri Lanka's central bank said it had been buying gold for the lastfive or six months as it diversifies its reserves amid volatile markets.