Gold dropped below $1,000 this morning ahead of the US Federal Reserve's meeting on interest rates, suggesting investors and speculators were still keen to book profits after pushing up the price to record highs.
Gold dropped to $998.60/999.40 per ounce from $1,001.00/1,001.80 an ounce in New York. It spiked to an historical high of $1,030.80 an ounce yesterday before profit taking erased most of the gains.
Investors remained bullish on gold and fears of further rises in prices also attracted limited buying from jewellers, said Leung, who pegged support at $990 and resistance $1,020.
Gold has gained more than 23 percent in 2008 on fears of inflation as crude oil hit record, expectations of further rate cuts and deepening US financial concerns after JPMorgan Chase & Co said it would buy cash-strapped Bear Stearns.
Platinum hit a 1-week low, while silver and palladium hovered below their recent highs.
The dollar hovered above its lowest level against the yen in nearly 13 years and a record low against the euro, but was prone to more declines on worries about the U.S. financial system.
Gold futures for April delivery on the COMEX division of the New York Mercantile Exchange fell $2.8 an ounce to $999.8 an ounce, off Monday's record of $1,033.90.
Spot platinum fell to $1,942/1,952 an ounce from $1,980/1,990 late in New York yesterday and off a record high of $2,290 an ounce hit on March 4.
Speculators booked profits after main producer South Africa said last week it would boost electricity output to gold mines after a power crisis.
The most active Tokyo platinum futures fell by the daily 300 yen limit to 5,991 yen per gram in a carryover of selling from New York.
Silver edged down to $19.95/20.00 an ounce from $20.35/20.41 an ounce. Spot palladium fell to $460/465 an ounce from $465/470 an ounce.