Gold little changed
Gold slightly changed on Tuesday after falling for four consecutive sessions as the breach of $1200 level pulled gold downwards.
Spot gold is traded at $1183.46 an ounce recording a high of $1184.79 and a low of $1179.75.
Yesterday, gold shed $8.90 or 0.75% to close at $1182.80 an ounce. Gold Price was setin London on Thursday at $1181.00 per ounce during the PM fixing declining from $1190.25 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, stood at 1,314.21 metric tons on July 19.
The shiny metal is not benefiting from the abysmal reports released recently which raised concerns with regard global recovery and thereby enhanced demand on the gold as a safe-haven as we saw downgrade to Ireland as well as the IMF and the EU suspension to a review of Hungary's funding program did not support the gold yesterday.
It seems that investors deemed the recent rise in gold prices was above the real value of the asset. Also, the decline in physical demand and technical reasons pushed gold to the downside.
The yellow metal also failed to get an upside push from oil which rose today to $76.52 a barrel recording a high of $77.67.
In currency market, the dollar continued its decline against a basket of major currencies as reported by the six-currency gauge, the dollar index, which retreated to 82.36 below the lowest level in six weeks yesterday on weak U.S. data.
On the other hand, the resumed its rebound that started on June 8 on expectations the stress tests on European banks due this week will show good results. However, it is traded in an overbought area and therefore a down side correction may be seen.