Gold for December delivery settled up 50 cents to $1,298.60 an ounce at the Comex division at the New York Mercantile Exchange. The gold price traded as high as $1,301.30 and as low as $1,295.80 on Monday.
The U.S. dollar index was losing 0.04% to $79.36 while the euro fell slightly to $1.34 vs. the dollar. The spot gold price Monday was down 70 cents, according to Kitco's gold index.
Record high gold prices were sparking some profit-taking and some tentative buying Monday as investors remained cautious over the global economy. Moody's downgraded Anglo Irish Bank's senior unsecured debt to one level above junk status which highlighted the fact that Ireland still has a lot of bailout money to issue as it tries to manage the nation's largest flailing bank.Traders are also shuffling their books as the third quarter comes to a close on Thursday. Some will need to ramp up their long gold positions to show they own the metal while others might need to sell gold to show a profit. "We anticipate further resistance short-term on a mix of profit-taking and option/technical selling," says James Moore, analyst at thebulliondesk.com in his daily metals report. "But with little change in the broader economic picture and investors concerned about further devaluing of fiat currencies we expect the bullish trend to continue."
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