Gold dropped on European uncertainty

Financeroll – Spot gold prices edged lower on Tuesday, pressured by a stronger dollar after Japan intervened in the currency market in the previous session, while incertainty over the euro zone's debt plan also weighed on market sentiment.    

Spot gold edged down 0.1 percent to $1,711.99 an ounce by 0015 GMT, after staging a monthly rise of 5.5 percent in October.    

U.S. gold GCcv1 lost 0.7 percent to $1,713.90. The dollar index extended hefty gains from the previous session during which Japan intervened in the currency
market to curb the strength of the yen.     

Trading activity in U.S. gold, crude oil and grain futures slowed to a crawl on Monday as the bankruptcy of MF Global Holdings Ltd forced a chaotic scramble to untangle trading positions.      

The euphoria over euro zone's plan to tackle its debt crisis started to fade, with Italian and Spanish bond yields soaring just before a meeting of Group of 20 leaders later in the week.      

Barclays Plc reported lower contributions from its commodities trading division in January-September 2011 after extreme volatility in oil and metals in the second and third quarters took a toll.

About the Author

admin

has written 24621 stories on this site.

Write a Comment

Gravatars are small images that can show your personality. You can get your gravatar for free today!