Gold Eases as Equity Markets Fall
Source: Mineweb, Jan Harvey and Jane Baird (6/7/10)
Gold eased on Monday, caught up in the sale of other assets.
Spot gold was bid at $1,213.05 an ounce at 1207 GMT, against $1,218.00 late in New York on Friday. U.S. gold futures for August delivery eased $2.40 to $1,215.30.
"The price at $1,200 is quite high for anybody to get into the market," said Afshin Nabavi, head of trading at MKS Finance. "The open position on Comex is showing quite hefty longs already, so it will need a correction to generate fresh interest."
European shares slid for a second day on Monday on renewed investor fears over euro zone debt levels after Hungary said on Friday its debt problems were similar to those of Greece.
World stocks also fell sharply as investors reacted to signs the U.S. economic recovery may be slowing after payrolls data disappointed investors on Friday.
"The danger for gold right now is being caught in the crossfire of other assets falling, triggering margin calls," said UBS analyst Edel Tully in a note.