LONDON, Aug 17: Gold firmed on Friday as equity markets stabilised, but analysts say it could come under further pressure as investors balance their portfolios and take profits to cover losses in other markets.

Spot gold was at $652.35/ 653.50 a troy ounce from $650.50/ 651.10 late in New York on Thursday, when it fell as far as $641.10 — the lowest since June 28.

They have sold the precious metal alongside equities during the recent market turmoil triggered by fears of a credit crunch.

Investors are de-risking their portfolios. People say it is a safe-haven, but price volatility is higher than that on US Treasury bonds, said Michael Widmer, analyst at Calyon.

Gold has had a good rally, people are taking profits, sometimes to cover losses in other markets.

Gold has in recent months shed its traditional role as a safe-haven because of its role in diversified portfolios of large investors, who see it as just another asset to be bought and sold.

It dispels the view that gold is a safe-haven in times of crises, said Michael Lewis, global head of commodities research at Deutsche Bank, adding that volatility in the gold market was set to rise further.—AFP