(CEP News) - Gold fell to a one-week low on Tuesday as a rebound in stock markets and failure to definitively break $1000 led to a round of profit-taking.

Most recently, spot gold was down $25.10 to $969.80 after falling as low as $960.

On Friday, gold hit an 11-month high of $1,006, but prices weren’t able to gain any traction on Monday despite a fall in equity markets.

Analysts at Barclays Capital said that the $1,000 resistance level is proving to be stronger than initially anticipated. “Prices have not been able to draw support from the same safe haven buying seen in recent weeks,” they wrote in a client note.

They also noted that the public’s enthusiasm for gold may be waning. The holdings in the largest physically-backed ETF were unchanged for the second consecutive day on Monday.

Options-related selling was also cited by strategists, with March contracts expiring on Tuesday.

By Adam Button, abutton@economicnews.ca, edited by Sarah Sussman, ssussman@economicnews.ca

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Posted in Categories: Commodities, Releases.

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