Thailand, South Korea and Kazakhstan added gold valued at about $2.59 billion to their reserves in July, joining Mexico and Russia in increasing holdings this year as central bankers hedge against depreciating foreign-currency reserves.
Gold fell for the first time in four days after the metal’s rally toward $1,800 an ounce prompted some investors to sell the metal.
Immediate-delivery bullion lost as much as 0.4 percent to $1,784.20 an ounce, and traded at $1,787.90 at 9:09 a.m. in Singapore. Gold’s relative strength index has topped 70 since Aug. 5, a signal of a potential drop.
“the next gold consolidation will build the base for a move to $2500 in 2012″ Shayne Heffernan of HCM said today.
December-delivery gold shed as much as 0.4 percent to $1,786.80 an ounce, after closing at a record settlement of $1,793.80 yesterday as investors sought to hedge against accelerating prices. An index of producer prices in the U.S. gained 0.2 percent last month, compared to a 0.1 percent increase that economists in a Bloomberg News survey were expecting.
Spot gold has rallied 26 percent in 2011, set for an 11th year of gains, as the debt crisis in Europe, slower U.S. growth and inflation in China boosted investor and central-bank demand.
Shayne Heffernan Best Buys in Gold are
African Rainbow Minerals Ltd, OZ Minerals Limited ASX:OZL