Gold slides in Europe

RECORDER REPORT

Gold slid below $1,630 an ounce on Monday, mirroring losses in nominally higher risk assets like stocks and crude oil, as concerns that the euro zone debt crisis could ensnare higher-rated countries hurt the single currency and appetite for risk.

Spot gold was down 0.8 percent at $1,628.71 an ounce at 1405 GMT, while US gold futures for June delivery were down $12.80 an ounce at $1,630.00.

Losses in the precious metal accelerated as US trading got underway, taking the metal to a 2-1/2 week low at $1,619.99 an ounce.

Prices are down more than 2 percent so far this month.

“The market was very well supported around $1,630 to $1,635 throughout last week, and I think that buying is now over,” Afshin Nabavi, head of trading at MKS Finance, said.

“Next support (is at) $1,600.” The euro fell, drawing little support from news at the weekend that the International Monetary Fund would receive a further $430 billion to safeguard economies from the euro zone debt crisis.

Concerns over the euro zone were a key factor pushing gold to record highs last year, but the dollar has since taken over as investors’ safe haven of choice.

Bad news from the bloc now tends to pressure gold, which falls in line with the euro.

Worries over the

Article source: http://www.brecorder.com/agriculture-a-allied/183/1181818/