Gold Drops in London on Reduced Hedge Demand

Gold fell in London as a decline in energy costs may reduce demand for precious metals as a hedge against inflation.

Gold had its biggest gain this week on July 1 after ABC News reported Israel was likely to attack Iran, sending oil up as much as 2.4 percent. The metal has climbed 43 percent in the past year as the weaker dollar spurred demand for a hedge against declines in the U.S. currency against the euro.

If $930 support level is broken, short term double-top will be fully formed and gold can go down to $920 level. I am bullish on gold in the long term but I think gold has temporary peaked.

I had shorted 1 lot of gold yesterday. See here.