Bullion slips in London as traders take profits after blasts

London (Platts)--7Jul2005

Bullion began to slip in early afternoon trading as traders used Thursday's
morning rally to take profits. Gold was bid at $425.20/oz at 1250 GMT, down on
its earlier bid price of $428.60/oz at 1037 GMT and also down on its morning
fix at $427.85/oz. A series of explosions both on the London Underground and
on London busses has, on first reports, killed two people and injured close to
200. British Prime Minister Tony Blair said it was "reasonably clear" that
there had been a series of terrorist attacks. Media reports suggest that an
Islamist website has posted a statement--purportedly from al-Qaeda--claiming
it was behind the attacks. London Underground officials have confirmed the
entire underground and bus network had been suspended after they were called
to incidents in Edgware Road, King's Cross, Liverpool Street, Russell Square,
Aldgate East and Moorgate stations, most of which serve London's financial
district. James Moore, an analyst with thebulliondesk.com said that traders
"would be quite keen to use the rally to liquidate long positions. Gold
rallied by $4 so it was a good opportunity." He said that gold could struggle
at lower numbers for the rest of the day.

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