MARKET TALK:

Gold Lower As Profit-Taking, Technical Selling Weigh


Gold is trading lower in Asia as investors continue
cashing in their holdings following heavy selling Monday. Spot gold is at
$1,656.30 a troy ounce, down $9 from its previous close and off 3.2% since the
start of the week. Traders say they're expecting gold to maintain its
correlation with risky assets including equities and base metals in the near
term and that the yellow metal will remain sensitive to macroeconomic
developments in the euro zone. The technical picture for gold is also weak,
they say. But Mitsui Global Precious Metals says gold's downside risk is
limited and outweighed by its upside potential. "This could be realised if and
when a reality check brings risk appetite back down to earth," the house says.