Gold inched down on Tuesday as investors sold bullion to lock in profits after it gained nearly 1 percent in the previous session on safe-haven buying following concerns over the arrests of some Saudi royal family members and ministers on corruption charges. Spot gold was down 0.2 percent at $1,278.75 per ounce as of 0746 GMT. The metal jumped nearly 1 percent on Monday, its biggest single-day percentage gain since Sept. 25 and closing above its 100-day moving average, which is typically seen as a bullish signal by technical traders.
US gold futures for December delivery fell 0.2 percent to $1,279.30 per ounce. "Saudi Arabia appears to have spooked global markets with the spillover from oil flowing into other markets. Gold has benefited from safe haven flows... Asia has seen some profit taking set in," said Jeffrey Halley, a senior market analyst with OANDA. "The situation in Saudi Arabia will bear close watching and will likely be the prime driver for gold," said INTL FCStone analyst Edward Meir in a note. Spot gold may end its consolidation within a narrow range of $1,263 to $1,281 per ounce very soon and then either bounce more to $1,299 or fall sharply towards $1,241, according to Reuters technical analyst Wang Tao.