Gold Down, But Fund Interest Supports - Trader

Gold prices are lower in Asia as traders lock in profits from the previous session's technically-driven rally. Spot gold is trading at $1,773.80/oz, down $2.00 from its previous settlement and $7.90 off Wednesday's high. Despite lower prices today, traders say gold is well supported above $1,750/oz by robust physical demand from Asian investors and strong fund interest in the yellow metal. "Some fund managers have been picking up gold recently because of additional hopes for more [monetary] easing in the U.S," a trader in Tokyo says. He adds that any renewed weakness in the USD will likely shore up gold prices, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback is soft. Traders tip strong near-term resistance for gold at $1,800/oz.