Daily Gold Update

Source: Bloomberg

New York— Gold dropped, ending a four-day rally, on speculation investors will sell holdings after bullion neared a key resistance level. Gold declined as much as 0.3 percent after reaching $970.47 yesterday, the highest level since June 5. The advance may stall before it reaches so-called resistance at $972 an ounce, Commerzbank AG said in a note yesterday, citing trading patterns. Resistance levels are where sell orders tend to be clustered.

�Some profit-taking is inevitable as gold moves closer to the $1,000 mark,� said Hwang Il Doo, a trader with KEB Futures Co. in Seoul. Still, �a good run of economic indicators is sapping demand for the dollar, which may help gold extend upward momentum.� Immediate-delivery gold dropped as low as $963.74 an ounce and was at $963.92 at 1:24 p.m. in Singapore. The Dollar Index fell as much as 0.2 percent to 77.598, close to yesterday�s 10-month low of 77.467. The precious metal may resume its advance after the Dollar Index, which tracks the U.S. currency against those of six trading partners, declined, said KEB Futures� Hwang. The dollar traded near its lowest level against the euro this year before a private report that economists said will show U.S. companies eliminated fewer jobs in July, reducing demand for safer assets. See full story.