Gold Prices Settle Lower (GC in The Street)

10 June 2010  The Street

Gold prices retreated quickly Wednesday as investors took advantage of gold's record high to take profits.

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The recent pop in gold prices has many analysts wondering if the gold trade is too crowded. Large double-digit price moves typically signify big buyers coming into the gold market like hedge funds or central banks after which smaller investors follow suit for fear of missing the trade.

Mark O'Byrne, executive director of Goldcore, disagrees. Goldcore is an international bullion broker and O'Byrne says gold remains a fringe investment.

"Buy orders are coming from wealthy and high net worth clients (minimum order remains $10,000) so the increased buying is not from the man in the street or the average retail investor." Despite the absence of retail investors, Goldcore's May bullion sales almost tripled from a year ago, the company says.

http://www.thestreet.com/story/10778615/2/gold-prices-settle-lower.html