Gold is showing signs of getting vulnerable as prices are unable to hold on to rallies in the face of rising equities and continued profit booking pressure as the expiry of the near month June series approaches.
Gold edged down on Monday as the euro steadied against the U.S. dollar, but worries about Europe's debt woes still underpinned sentiment after Fitch downgraded Spain's credit rating. The yellow metal extended its recent trading pattern of facing pressure at a time when the equities rise and dollar eases.
Volume was thin as the United States and the UK are on holiday on Monday. COMEX Gold futures for June hit a high of $1217 per ounce and eased to trade at $1212.30 per ounce. Gold hit a record of $1,248.95 mid-May on fears euro zone credit problems were spreading but has been trading with a slight downward bias thereafter.
