GOLD came under pressure yesterday, as the dollar firmed against the euro, but losses were capped by rising equity and commodity markets on the back of a new US plan to cleanse banks of toxic assets.
Spot gold was at $946,80-$948/oz by midafternoon, down from $950,90 late in New York on Friday when it rose as high as $966,70, the highest since February 25.
“Just a bit of long liquidation is taking place,” Afshin Nabavi of MKS Finance said.
“At the same time all stock markets in Europe and US are positive. The dollar’s a bit firmer, but I think gold holds up nicely around $946/oz area.”
Equity markets and industrial commodities such as copper and oil rallied as markets tried to price in the possibility the crisis engulfing financial markets could at last be coming to an end. Reuters
