Gold off one-month high as investors take profits

By Lewa Pardomuan

LONDON (Reuters) - Gold fell in volatile trade on Thursday, as investors booked profits after pushing up the price to its highest level in more than a month above $930, but more gains may be on the cards with oil hitting another record peak.

Spot gold dropped to $922.50/923.50 an ounce from $928.55/929.75 an ounce late in New York on Wednesday, having earlier jumped to $935.30 an ounce -- its highest level since April 18.

Oil roared to an all-time high above $135 an ounce on supply worries and the weakening U.S. dollar, triggering fears of inflation and raising gold's safe-haven appeal.

"I think the confidence is back in the market. We broke $900, we broke $930," said Frederic Panizzutti, metals analyst at MKS Finance.

"So definitely we see some potential for higher levels again. The psychological (resistance) is $950, then probably $980 and there is of course the psychological $1,000 level."

Despite the gains, gold was still more than $100 away from the record high of $1,030.80 an ounce hit on March 17.

Some analysts remained cautious.

"There are enough supply constraints and there is no dearth of bullish views on crude oil from various institutions and organizations. This one-way outlook adds fuel to the fire, propelling gold along with it," said Pradeep Unni, analyst at Vision Commodities in Dubai.