Gold edged lower as traders pondered the latest failure by euro finance ministers to agree a new bail-out for Greece.
The spot gold price fell US$1.12 to US$1,725.8 and despite new data from the International Monetary Fund showing central banks upped their buying in October with Brazil making its second sizeable purchase in two months.
Brazil now holds 52.5 tons of gold, after adding 17.2 tons in October. Kazakhstan, Russia and Turkey also added to their holdings, though Germany cut its holding by 4.2 tons, its first reduction since June.
It remains the second largest holder of gold with 3,319 tons even so. The US has the largest gold stocks.
Gold accounts for about 0.5% of Brazil’s total reserves and 20% of Kazakhstan’s, compared with more than 70% for the US and Germany.
Central banks have bought 373.9 tons in 2012 so far with the full year predicted to see around 450 tons purchased.
Today, traders said the gold price had been affected by the weakness of the euro against the US dollar following the new Greek delay.
Euro finance ministers said they were some technical issues to sort out before Greece could receive its extra funding and they would meet again on Monday to discuss the package again.
Silver eased to below US$33, while platinum was little moved at US$1,571.
