RTRS: Gold edges lower as euro steadies against $US
Gold edged down today as the euro steadied against the US dollar, but worries about Europe's debt woes still underpinned sentiment after Fitch downgraded Spain's credit rating.
Volume was thin as the United States and the UK are on holiday on Monday, but dealers expected bargain hunters to resurface at lower levels. Gold hit a record of $US1248.95 in mid-May on fears euro zone credit problems were spreading.
Spot gold was at $US1211.00 an ounce, down $US1.75 from New York's notional close on Friday. US gold futures for August delivery fell $US2.60 an ounce to $US1212.4 an ounce.
"There is a chance for some wild movements if you get a bit of volume come in, but for the time being I wouldn't expect too much," said Darren Heathcote, head of trading at Investec Australia in Sydney.
"I think will be a wait-and-see approach," said Heathcote, adding that bullion would be looking at currencies for direction.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings were unchanged at a record of 1267.930 tonnes as of May 28.
The euro was steady at $US1.2282, holding above a four-year low of $US1.2143 hit this month, but the currency was still under pressure after the Fitch downgrade of Spain.
Fitch cut Spain's credit rating by one notch to AA-plus on Friday, saying the country's economic recovery will be "more muted" than the government forecast due to its austerity measures.
