LONDON, June 25: Gold prices slipped on Monday as weakness in oil prices, base metals and equities prompted bullion investors to lock in profits, analysts said. A report from the Bank of International Settlements warning about inflationary pressures also dampened sentiment, they said, adding gold was seen trading in a range this week, with a bias to the downside.

There is not an individual factor. People across the board locked in some profits today and got out of the market, said Michael Widmer, director of metals research at Calyon Corporate and Investment Bank.

The BIS report has also alerted the market to some extent.

A lot of people have been focusing on that report in part because it said central banks should keep raising interest rates and that's what spooked a lot of people off. Spot gold fell to $650.75/651.35 an ounce by 1004 GMT, compared with $653.60/655.10 late in New York on Friday.

Oil prices fell one per cent to below $71 a barrel after Nigerian unions ended a strike that had threatened to disrupt oil exports, while copper slipped to one-week lows.

The UK's leading shares fell for a sixth session in a row, tracking steep falls on Wall Street at the end of last week and with banks and commodities reflecting much of the decline.

Gold traditionally is seen as a hedge against inflation, but higher interest rates could boost the dollar and undermine gold.

Interest rate speculation is likely to suppress the gold price in the week ahead, although a surge in oil or a bout of dollar weakness will no doubt trigger buying interest, said James Moore, precious metals analyst at TheBullionDesk.com.

Goldman Sachs (GS) said in a research note that it had reduced its forecast for gold prices over the next year by $25 to $725 following a more neutral stance on the dollar.

However, GS Research remains bullish on gold prices despite a relatively modest dollar depreciation forecast.

They believe gold is currently undervalued and physical demand is likely to remain supportive, it said.—Reuters