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Jun 27, 2012, 09.54 AM IST
Gold was little changed around USD 1,571 a n ounce on Wednesday after falling in the previous session on worries that a global economic slowdown triggered by a worsening debt crisis in Europe could prompt investors to turn to the safety of the US dollar.
Inflation fears helped gold stretch its winning run to an 11th year in 2011, but investors now feel uneasy about deflation after recent reports showed signs of slowing global economic activity, already dented by the debt crisis in Europe. FUNDAMENTALS * Gold hardly moved at USD 1,571.89 an ounce by 0028 GMT, having hit a low around USD 1,567 o n Tuesday following the release of U.S. consumer confidence data, and after German Chancellor Angela Merkel signalled the EU's largest economy and paymaster opposed the idea of raising common euro-zone bonds to deal with the debt problems. * Physical dealers, who have seen limited buying interest in recent weeks, said a slowdown in the global economy could force jewellers, investors and speculators to tighten their purses. * US gold for August delivery fell USD 2 an ounce to USD 1,572.90. MARKET NEWS * Japan's Nikkei share average inched up at Wednesday's open, with bargain hunting providing support after two sessions of losses, although investors were reluctant to take positions ahead of an EU summit beginning on Thursday. * US oil held steady above USD 79 a barrel on Wednesday ahead of data due later in the day that could show a drop in crude stockpiles, although worries over the euro zone debt crisis are set to limit price gains. * The euro fell to its lowest against the dollar in more than two weeks on Tuesday as Spanish bond yields rose and hopes faded that a European summit would make progress in resolving the region's debt crisis. DATA/EVENTS (GMT) 0600 Germany Import prices 1230 US Durable goods orders 1230 US Chicago Fed Midwest Manufacturing Index 1400 US Pending home sales PRICES Precious metals prices 0028 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1571.89 0.11 +0.01 0.52 Spot Silver 27.06 -0.02 -0.07 -2.28 Spot Platinum 1421.45 1.65 +0.12 2.04 Spot Palladium 590.28 -0.72 -0.12 -9.54 COMEX GOLD AUG2 1572.90 -2.00 -0.13 0.39 1622 COMEX SILVER JUL2 26.99 -0.05 -0.20 -3.33 1528 Euro/Dollar 1.2482 Dollar/Yen 79.38 COMEX gold and silver contracts show the most active months
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