Reply #50: Gold price steadies as dollar's clout fades [View All]

[Ghost Dog]

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-02-13T061552Z_01_SYD206699_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-1.XML

SYDNEY, Feb 13 (Reuters) - Gold steadied on Tuesday after sharp declines the previous day as the U.S. dollar lost some of its clout against other currencies.

Gold see-sawed by a dollar or so across Asia, just above the widely marked technical support level of $660 an ounce, countering some expectations that geopolitical worries might drive bullion towards $700.

At 0600 GMT, spot gold <XAU=> was quoted at $662.50/663.20 an ounce versus $663.45/$4.20 in late New York trading.

Investors this week were initially seen putting more money into gold as tensions were seen increasing in the Middle East after European Union foreign ministers agreed on sanctions on Iran to raise pressure over its nuclear programme.

Gold rose to $668.20 an ounce in Monday trading, prompting forecasts of prices zooming as high as $700 an ounce before the rally fizzled and prices recoiled.

"What we saw was a classic bout of profit taking, which ended the run," a dealer said.

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