Gold slipped back despite market concerns over the health of the eurozone and the US economy.
Spot gold dipped US$13.3 to US$1,764.7, while silver eased US$0.55 to US$34.1, as the US dollar staged a comeback against the euro on concerns bailout measures proposed for European banks and indebted states may still not be enough.
The euro fell today on worries were about Spain and its financial postion ahead of a potential debt ratings downgrade and a statement on its debt situation later this week.
Buying though exchange traded funds (ETFs) drove much of the rally in the gold price last week and physical inflows are at near record levels after the US monetary easing.
Consumer demand in India, a huge market for gold, also picked up as India process fell sharply in local currency terms.
Platinum also eased lower as the buying on fears of major disruption to South African output have eased following the settling of the dispute at Lonmin last week.
Platinum futures eased back, with the contract for October down US$14.8 at US$1,622.8.
Anglo American was weak as Bank of America Merrill Lynch cut its stance to 'neutral' because of the industrial unrest in South Africa.
While there is value in Anglo, Merrills says the ongoing union related labour disputes, particularly impacts the group’s key platinum division and because the shares may be handicapped longer term. There price target is £2,400.
