Spot Gold prices fell from a high of $1,192/oz on Tuesday as continuing strength in the dollar led to pressure on the yellow metal. The US Dollar touched a high of 83.53 yesterday and the currency found support above 83 levels. This indicates that markets have become risk averse and investors are flocking to the dollar as a safe-haven despite the currency providing a low-yield. Global equity markets also witnessed downside pressure yesterday as risk averse investors remained cautioned. OUTLOOK We expect gold prices to come under pressure as the US Dollar has found strong support above 83 levels. Continuing strength in the dollar will cap gains in the yellow metal on the back of safe- haven buying during uncertain financial market conditions. The dollar is expected to strengthen further and the index could test levels around 84 today as factors like risk aversion and economic worries in the Euro zone will support gains.

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