Metals - Gold dips from Friday's highs as Chinese equities weaken
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LONDON (Thomson Financial) - Gold dipped in morning trade, falling back slightly from Friday's two-week high as investors sold off stocks of the metal to cover losses on the Chinese markets this morning.
At 9.42 am BST, spot gold was quoted at 668.90 usd an ounce, down slightly from the 671.30 usd level seen in late New York trade on Friday, when the precious metal hit a two-week high of 671.70 usd.
Gold dipped in Asian trade as investors sold off stocks of the precious metal to cover positions elsewhere as equities in mainland China weakened, according to analyst James Moore of TheBullionDesk.com.
"I don't think this is bad news for gold," he added. "It really underpins gold's position as a safe haven."
Investors are also unconvinced Friday's prices are sustainable in light of a lack of further bullish factors, such as a likelihood of a drop in the US dollar against other currencies.
"There is nothing really out there to bring people back into the market," noted Michael Widmer, an analyst at Calyon.
However the precious metal remains near recent highs, supported by steady oil prices and ongoing geopolitical tensions, analyst said.
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