Gold prices fell Wednesday after an announcement by the European Commission for plans to push eurozone bonds and also China's premier expressing support for struggling European countries.
The head of the European Commission, which is the administrative arm of the European Union, said the 17-nation bloc will shortly offer proposals for common euro bonds, something Germany has opposed.
It's still a market with all eyes on Europe and how the euro is trading. But we haven't had any economic data for Monday and Tuesday, so today's PPI number will closely watched for signs of stagflation, Joe Saluzzi, co-manager of Themis Trading in Chatham, N.J., told Reuters.
Chinese Premier Wen Jiabao said China was willing to expand its investment in Europe, but European leaders must also recognize China's status as a market economy, Dow Jones reported.
Countries must first put their own houses in order, said Wen, according to Bloomberg. Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe.
Major European stock indexes rose: The FTSE 100 was up 1.4 percent, the DAX climbed 2.5 percent and the CAC 40 increased 1.5 percent.
S&P 500 futures were up and higher than fair value, indicating U.S. markets would open higher.
Gold on New York's futures exchange fell 10 cents to $1,830 per troy ounce. Gold for immediate delivery fell $10.05 to $1,827.32.