Gold further declines as EU concerns eased

Gold further declines as EU concerns eased

Gold futures on the COMEX Division of the New York Mercantile Exchange further declined on Thursday, as market concerns over EU debt crisis were eased after Italy succeeded in its bond auction and a new Greek leader was named.

The most active gold contract for Dec. delivery shed 32 U.S. dollars, or 1.8 percent, the biggest drop three weeks, to 1,759.6 dollars per ounce.

Market analysts said that the positive movement in the Europe helped alleviated market concerns to some extent and thus dampened such safe-haven demands.

The Italian government managed to sell five billion euros (6.8 billion dollars) in 12-month Treasury bills, the maximum for the Treasury auction, in the face of rising yield. Besides, in Greece, a former vice president of the European Central Bank was named as the country's new prime minister.

Meanwhile. the upbeat U.S. economic data added to the negative sentiment in gold market. The U.S. Labor Department reported that initial jobless claims fell by 10,000 to a seasonally adjusted 390, 000 in the week ended Nov. 5. The Commerce Department said that the U.S. trade deficit contracted four percent in Sept. to 43.1 billion dollars.

However, some analysts noted that the debt problem in EU is unlikely to be resolved for good and the safe-haven demands would come back sooner or later.

Silver for Dec. delivery dropped 25.5 U.S. cents, or 0.7 percent, to 34.106 dollars per ounce. Platinum for Jan. delivery also shed 16.4 dollars, or one percent, to 1,627.3 dollars per ounce.

Editor: Mu Xuequan

English.news.cn   2011-11-11 06:10:34 FeedbackPrintRSS
CHICAGO, Nov. 10 (Xinhua)