Gold is quoting just under $1690 per ounce in early London trades after witnessing a massive correction in the last session. The US dollar has dropped from its highest levels in nearly a year against the Euro and some buying emerged in the European stock markets. The Dollar has been unable to hold on under 1.3000 threshold and currently quotes at 1.3022 against the Euro. Asian equities slipped earlier in the day as the strength in dollar and Eurozone debt impasse triggered further selling.
Chinese manufacturing output and new business both fell at slower rates in December. The Flash China Manufacturing PMI (Purchasing Managers' Index) was at 49.0 (47.7 in November) and the Flash China Manufacturing Output Index at 49.5 (46.1 in November) - both at 2-month highs.
Gold was hit hard yesterday, falling under $1600 per ounce levels and testing lows of $1563 per ounce- it's weakest in four months. European and US equities closed sharply lower, adding up their recent string of losses and a mega a sell-off swept through commodities on concerns that Europe's debt burden will crimp economic growth for years.
The metal recovered from these lows in Asia though and currently quotes at $1586.30, down 60 cents on the day.
