Gold was steadier after the swings seen Monday, when the price soared to more than US$1,200 after a surge in trading after flat US inflation figures.
More than 7,000 futures contracts changed hands in a minute according to reports, though but the close of the US trading day the price was almost back where it started.e spike upwards encouraged more sales by exchange traded funds, with outflows of 2.4 tons according to Bloomberg reports.
The total held in gold-backed ETFs is now back below 1,600 tons for the first time since mid-January.
Commerzbank said: “ETF outflows are increasingly becoming a burden on the gold price.”
Outflows in May, when 23 tons were withdrawn, appear to be continuing this month too, while since the beginning of the year, inflows have totalled only 1.1 tons.
It is a heavy economic data week culminating in the non-farm payrolls number on Friday, while Greece continues to dominate the picture in Europe.
Greece has to repay €1.6bn to the IMF by the middle of June, a sum that is universally acknowledged it doesn’t have.
Latest reports are that the country’s creditors have agreed on a deal to put to the Greek government, which it will have to agree to in order to get more funds.
An hour into trading spot gold was US$4 higher at US$1,193, silver was US$16.78 while platinum added US$7 to US$1,108.
