Gold fell as investors take profit

Gold dropped from record as investors took advantage of elevated prices achieved by the metal in previous trading, and extending yesterday's drop on higher dollar. The Euro ascended as Portugal asked the EU and the IMF for a bailout, where officials are scheduled to meet in Lisbon to discuss aiding the country.

Bullion for immediate delivery dropped to 1,458.54 an ounce, compared with the opening levels of 1,462.90, while setting a high of 1,463.88 and a low of 1,453.65. Futures slid 0.68% to trade at $1,458.100 an ounce.

Investor's desires to hedge against inflation forced the metal to set new record at $1,476.30 an ounce, where fears of inflation intensified after China hiked rates for the third time this year, while price acceleration in Europe was noted during the past period to surpass the desired rate set by central banks in the continent.

The ECB hiked rats last week by 25 basis points, taking the interest up from the record low of 1.0% to 1.25 percent. BoE left the key lending rate unchanged during April despite that inflation rose in March by 4.4 percent from the previous 4.0 percent reported a month earlier.

Germany's EU Harmonised index, rose in March by 0.6% from 0.5%, while on the yearly scale, the index rose by 2.3% from 2.2%, signaling that inflation continues to build in Europe's largest economy.

The US dollar index, which tracks the performance of the currency against six-majors, traded at 75.07, compared with the opening levels of 75.03 while setting a high of 75.19 and a low of 75.01. Gold usually moves inversely with the dollar as commodities are a dollar weighted index.

Technically speaking, gold's trend remains to the upside as far as the support at $1,390.00 an ounce remains intact and the dollar continues to weaken, while the 100-day MA support level is set at 1,374.00 an ounce.

Gold's trading remains above the support at 1,445.00 an ounce, where if breached it will pave the way for the pair to test the support at %1,425.00 an ounce, but the general trend remain to the upside with initial targets set at 1,480.00 an ounce and probably achieve new historic highs above those levels.

The S&P GSCI index closed trading at 750.27; falling by 10.06 points, while the RJ/CRB commodity index closed at 366.00, after dropping 2.7 points.

Major Metal Fixing

As for metal Fixes (Apr 11); Gold fixed at AM Fix was set at $1,469.50 an ounce while the PM fixing (Apr 11) was set at $1,468.00 an ounce; meanwhile silver fixing was set at $41.37000 an ounce and Platinum AM Fixing (Apr 11) was set at $1,804.00 an ounce, and at 1,802.00 an ounce during the PM fixing (Apr 11); finally ending with Palladium AM fixing set at $795.00 at (Apr 11) AM fixing, while the PM fixing (Apr 11) was set at $795.00 an ounce.

Other Metals

Silver for immediate delivery traded at $40.21 an ounce compared with the opening levels of $40.24 an ounce, while setting a high of $40.40 an ounce and a low of $39.84 an ounce. Silver future contracts traded higher by 1.17% or 0.477 to trade at 40.135 an ounce

Platinum for immediate delivery traded higher by $7.0, at $1,790.000 an ounce, while Palladium rose by $16.0 to trade at $776.00 an ounce.