Gold drops on profit-taking

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as profit- taking caused a slip following Thursday's surge on Malaysia Airlines flight crash.
The most active gold contract for August delivery fell 7.5 U.S. dollars, or 0.57 percent, to settle at 1309.4 dollars per ounce.
Gold spiked Thursday due to safe haven demand spurred by concerns over rising geopolitical risks related to the crash of a Malaysian passenger plane over eastern Ukraine. But a lack of physical follow-through made that upward move unsustainable, said analysts.
Analysts believe that gold will be pressured as investors focused more on the possibility of U.S. interest rate hikes in 2005, especially if the U.S. job market further improves.
Silver for September delivery lost 24.8 cents, or 1.17 percent, to close at 20.886 dollars per ounce. Platinum for October delivery lost 13.8 dollars, or 0.92 percent, to close at 1489.9 dollars per ounce.