Gold retreats on profit taking

Precious-Gold slipped on Wednesday as investors preferred to sell the metal to lock in gains after it touched nearly one and half month high yesterday.

Gold advanced more than 6% over the past three weeks on concerns global recovery is waning which encouraged a flurry of profit taking, especially as the metal is currently trading in an overbought area as depicted by momentum indicators on the daily charts.

Yesterday, the shiny metal fell from a high of $1228.95 after US industrial production and capacity reports for July beat estimates. Gold shed $0.80 or 0.07% to close at $1224.64 an ounce. Gold Price was setin London on Tuesday at $1226.00 per ounce during the PM fixing declining from $1226.25 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, surged 7.91 metric tons to 1,294.60 on August 17.

In currency market, the dollar rebounded against a basket of major currencies as depicted by the dollar index which climbed to 82.38 compared with yesterday's closing at 82.18 which also damped demand on gold as an alternative investment.

The dollar's rise also weighed on oil pushing it down to a low of $75.02 a barrel from the day's opening at $75.45 where the advance in Asian shares could not boost the black gold.

Spot gold is trading at $1221.75 an ounce after recording a high of $1226.50 and a low of $1220.51.

Among other precious metals, platinum inched down to $1539.50 from $1539.70 on Tuesday; palladium declined to $492.50 from $493.70; and silver slipped to $18.44 from $18.52, as of 08:07 GMT.