Commodities: Gold slips from record level

30.01.2008

Gold prices moved down from record highs, falling $2 to $930.80, as investors pocketed profits.

The dollar rising impeded gold as did comments by South Africa's state power firm, which pledged to increase supplies this week to mines affected by power shortages.

Even so, the degree of profit-taking was curbed as some investors remained on the sidelines speculating whether the Federal Reserve will cut interest rates again this week.

A cut in rates will hinder the dollar and therefore make gold a more attractive proposition.

Crude futures gained modestly on expectations of a rate cut, while OPEC, which meets later this week, is seen at keeping production levels unchanged.

U.S. crude settled up 65 cents to $91.64 a barrel.

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