Gold struggled again with traders still seemingly shocked by yesterday’s sudden slide towards the US$1,660 level.
Talk of a big fund selling out a major position was cited as a reason, but traders were puzzled as the US dollar had another poor day against the euro and other currencies.
The possibility of a pronged slide in the dollar has been seen as one of the key supports for gold in recent months.
Spot gold recovered a little last night but was still hovering about the US$1,665 level despite more gains for the euro following the decision by a ratings agency to upgrade Greece’s status by a few notches.
Traders added that trading was light as the holiday approaches and that fundamentally the possibility of weaker US dollar would help the gold price in the medium-term.
Many commentators predict the price will breach US$2,000 next year due to a combination of low real interest rates, central bank buying and enhanced geopolitical uncertainty.
Chartists also pointed out that gold held its $1661 level, the the exact 50% retracement of the May to October rally and also the 200-day moving average.
Silver eased lower with gold to US$31.3, while platinum added US$2 to 1,591.
