Gold price lifts, recovers from sell-offs
London (Oct 6) Gold prices in Europe rose on Monday, recovering from sell-offs early in the day, but continuing to trade broadly flat.
Spot gold was trading at $US1,194.70 a troy ounce, up 0.3 per cent, in morning European trade.
"The yellow metal extended its weakness and is currently trading within striking distance of major support at $US1,182.52, the December 2013 low," UBS analyst Edel Tully said.
Given gold's recent run, it is unclear whether this movement is a consolidation or simply a pause before continuing on a downward trajectory, according to analysts.
"Gold has held up relatively well compared to the other precious metals but, in our view, remains vulnerable, given our dollar and rates view. The cost of production offers little support for prices amidst weak physical demand, but market focus will shift towards the extent of strength in Chinese gold demand after the national holiday," Barclays analysts said.
The precious metals complex was evenly split. Silver was up 1.2 per cent at $US17.016 an ounce, platinum was down 0.6 per cent at $US1,213.00 an ounce, and palladium was down 0.3 per cent at $US750.20 an ounce.