jewellers strike India

A shaky day on the equities market lent support to spot gold. The metal traded higher by $30 to $1660 as safe haven status took precedence with European problems rearing its ugly head again.

Spot gold slid almost 1% as month end futures contracts rolled over and a weaker Euro all added to the slide, which saw gold touch a new weekly low of $1647.

Spot gold retreated on concerns the lingering strike in India will cut into the buying. The yellow metal dealt to an intra-day low of $1654.

“Enthusiasm for precious metals waned as the boost from (Federal Reserve Chairman) Bernanke’s dovish comments the previous day began to fade. Evaporating physical demand also pushed gold lower, dragging down the rest of the complex” Standard Bank said in their daily note.