Gold prices were flat on Wednesday after successful Spanish Government bond auctions dispelled fears of renewed debt crises in the euro-zone. Meanwhile, silver prices have edged lower.
The market sentiment turned positive on Tuesday, pushing up equities and other riskier assets as Spain’s bond auction went off smoothly, while Germany’s business sentiment index rose surprisingly, for the fifth straight month.
According to futures analyst Li Ning, CIFCO, and Shanghai, “The nervousness around the euro zone has eased a bit, which could help stabilize the euro and support gold prices”.
However, on a cautious note Li also emphasized that much will depend upon the policy meeting of the U.S. Federal Reserve next week, as comments from the Fed over recent weeks have caused sharp price fluctuations.
While spot gold price stood almost flat at $1,649.89 per ounce by 0250 GMT, after touching a one-week low near $1,634 in the previous session, U.S. gold also remained nearly unchanged at $1,651.
Meanwhile, gold’s physical demand in Asia remained muted even though gold buying festival in India approaches in few days.
Commenting over weak demand, Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong said to CNBC, “People won't want to commit too much at this point”. Mr. Leung also added "There is some buying when prices fall to the $1,630-$1,640 level, but the volume shrinks when prices rebound to $1,660-$1,670."
The gains were also seen in some other precious metal markets as well. Spot platinum climbed up half a percent to $1,585.44 per ounce after dropping to $1,556.50 earlier this week – its lowest level in last two months.
India, the world's biggest importer of gold, may see platinum imports grow by almost 50 percent this year to 20-22 tons.
Spot palladium also edged to a two-week high of $662.50 per ounce before paring some gains to $660.95, which was still up half a percent from the previous close.
Silver futures, meanwhile, have edged lower. At last check, silver futures were down 0.77%.
