Gold for June delivery was falling $9.30 to $1,152.90 an ounce. The gold price Tuesday has traded as high as $1,158.10 and as low as $1,145.40. The euro was slightly lower against the U.S. currency despite a successful Greece bond auction. The spot gold price was slipping over $3, according to Kitco's gold index.
The gold price settled at $1,162.20 an ounce on Monday, which was a key resistance area investors were watching, and the run-up triggered light profit-taking. Many analysts expect a mild short-term consolidation but that over the long term gold's three-day breakout above $1,150 will trigger momentum buying and a price push to $1,200 an ounce. The gold price will continue to look to the U.S. and the euro for short-term direction.\
"We are setting up for another retest of $1,200 an ounce, but I think we're still waiting for a little more confirmation," said Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund. "Mainly the gold equities haven't cleared their Jan. 11 high, and if they're able to that, which is another 5% or so, I think we'll get some confirmation that we can retest the prior high for gold."
The price of silver was losing 31 cents to $1.
Disclosure: The author holds no positions in the company