KONTAN.CO.ID - JAKARTA. Gold slid more than 2% on Tuesday as the dollar clung to recent gains and risk appetite was boosted by an expected U.S. stimulus deal, prompting investors to take profits from bullion's explosive run to a record high. Spot gold fell 1.9% to $1,989.77 an ounce by 0952 GMT, retreating from last week's record high of $2,072.50. U.S. gold futures declined 1.8% to $2,003.10. "The retreat was inevitable," said StoneX analyst Rhona O'Connell, adding that gold has been technically overbought for a while.
That gold did not advance further despite rising geopolitical tensions showed that a lot of supportive elements for gold have already been priced in, she said. Adding to gold's headwinds, global equities hit multi-month highs on expectations that U.S. Congress will agree a massive stimulus deal while looming trade talks raised hopes of an easing in tensions between the United States and China. The dollar, too, clung to recent gains, making gold less attractive for investors holding other currencies. Read Also: Philippines reports highest cases, Indonesia records highest death toll in ASEAN Beyond technical triggers, the fundamental reason for gold's moves is that the dollar weakness of the past few weeks has paused, said Saxo Bank analyst Ole Hansen.