Gold prices fell slightly at European market on Thursday, in the continuance of the
downward correction for the second day in a row from the highest level in four weeks,
as the US dollar stopped falling against a basket of world currencies.
Gold prices fell 0.1% to 09:35 GMT to trade at $ 1276.20 per ounce from the opening
level of $ 1277.76 and recorded the highest level of $ 1279.60 and the lowest level of
Gold prices have lost yesterday about 0.2%, in the first loss in three days, driven by
the correction and profit taking processes, after such prices had earlier recorded a
four-week high of $ 1289.52 an ounce.
The dollar index rose 0.1%, reversing the decline of the US currency against a basket
of world currencies, the index had earlier recorded in yesterday trading 93.29 points,
as the lowest level in four weeks, before reducing the losses.
The index trimmed its losses after release of data on inflation in the US, which kept
the prospects of raising the US interest rates in December without any worth
mentioning change, especially as core consumer prices rose, while the retail sales
showed that the domestic demand is resilient, and heading towards improvement in
the coming period, especially as the holiday shopping season approaches.
Gold holdings in the SPDR Gold Trust Fund, the world's largest gold-backed index
fund, remained unchanged yesterday for the second consecutive day, to stay at 843.39