Gold fell in London on speculation that a record reached yesterday was overdone...
Gold fell in London on speculation that a record reached yesterday was overdone and as a technical chart used by some investors signaled they should sell the metal, Bloomberg reported.
Gold had its best start to a year since 1975, reaching a record on Jan. 8 and 9, as a jump in oil prices spurred investors to seek a hedge against accelerating inflation. That took gold's 14-day relative strength index to 72 yesterday. A reading above 70 signals prices may decline.
Gold for immediate delivery fell $1.77, or 0.2 percent, to $877.04 an ounce as of 9:52 a.m. in London. The metal reached a record $891.70 yesterday, extending a seven-year winning streak. Silver for immediate delivery fell 10 cents, or 0.7 percent, to $15.59 an ounce.