Gold dips for private wealth traders

The value of gold has fallen during trading today (May 19th), as investors using their private wealth to trade in the precious metal carried out profit taking.

Its price has dipped by around one per cent to approximately $1,207 (£846) an ounce, Reuters reports, as those operating on the commodity markets look to take advantage of the all-time price highs reached earlier in the month.

Gold is traditionally seen as a safe haven asset for times of economic uncertainty and it rose to a record of about $1,250 an ounce as investors expressed concerns about sovereign debt in the eurozone.

However, a rise in net long positions on New York futures is an indication the market for gold is ’technically overbought’, Reuters said.

And traders are also turning their attention to riskier assets such as stocks, which prompted James Moore of TheBullionDesk.com to warn the precious metal’s value is ’at risk of correction’, Bloomberg reported recently.ADNFCR-2318-ID-19786570-ADNFCR