Gold falls from record high on some sell-off by investors

The precious metal fell for the second day to halt its rally after it touched the highest level on records yesterday as investors preferred to sell the metal after returning from Easter holiday on expected decline in gold prices as the metal trades in an overbought area.

Yesterday, the metal fell after reaching all-time high of $1518.12 an ounce due to some selling pressure as momentum indicators gave bearish signs. However, the downside correction is expected after the previous rally, yet the question remains whether gold would be able to rebound again targeting new high levels.

Eyes today will be on the Fed meeting and some US data, including consumer confidence.

The Fed is predicted to keep interest rate at its low level which will not support the dollar that fell tremendously against majors since the beginning of the current year.

The dollar advanced today after comments from the ECB President as he backed strong dollar and said it is in interest of the United States, yet the dollar fell again after the comments.

The dollar index, which tracks the dollar movements versus a basket of major currencies, dropped from a high of 74.32 to 73.88.

The weak dollar along with other factors had been the major supporters to the rise in gold prices as investors resorted to the yellow metal as alternative investment.

Meanwhile, gold is traded at $1504.65 after recording a high of $1508.22 and a low of $1495.45.

With regard oil prices, it slipped to $111.94 a barrel while the day's high was recorded at $112.21 and low was depicted at $111.10.