Spot gold was down 0.9 percent at $1,311.93 an ounce at 0930 GMT, while U.S. gold futures for August delivery were down $9.20 an ounce at $1,315.50.
Losses in the wider markets reversed on Tuesday, with European shares up 2.3 percent after a three-day fall on hopes of a more co-ordinated central bank response to financial market losses. [MKTS/GLOB]
"Equities are showing some signs of stabilization, and gold is really a mirror image of what the equity markets are doing," Julius Baer analyst Carsten Menke said. "But clearly there is a lot of uncertainty in the market so I would not expect gold to move quickly below $1,300."
"If we have news that there is stress in the financial system, which might make people think we are moving into a Lehman-like moment, that could trigger higher gold prices. But as long as we do not see these indicators of systemic stress, gold should stay rather rangebound at these higher levels."
Societe General’s head of metals research is now calling for the metal to move much higher from current levels. ‘We expect prices to rise to $1,400/oz, with follow-through strength extending to the rest of the precious metal sector,’ Robin Bhar told Kitco News Monday. ‘The heightened market uncertainty will prompt investors to seek safe-haven assets, benefiting gold and the rest of the precious metals. While, arguably, some of this uncertainty has already been priced in, there is likely much more to come.’ Gold is still holding onto its near 5% gains Friday, with August Comex gold futures last up $4.60 at $1,327 an ounce. The spillover effects of the Brexit vote are also impacting the market’s expectations for U.S. rate hikes. According to CME’s FedWatch tool, markets are now pricing in a 6% chance of a rate cut in July.
So, today is good idea to prepare cash and buy a little bit gold. Today, gold is down because of correction prices after yesterday maximum $1337 per ounce.
Gold price is stable between minimum $1306,5 an ounce and maximum $1337 per ounce. Today and tomorrow EU countries leaders have a meeting and discuss about the future. I think, its the reason, why is gold price slow down today. Traders waiting for news and ideas about the future of the new world.
Today, I bought gold:
1. 1317,52- 100 ounce
2. 1316,21 - 50 ounce
3. 1313,98 - 50 ounce
4. 1309,87 - 20 ounce
Today s minimum - 1305,38 per ounce. Strong supply is $1300 per ounce. I think, I can take profit near yesterday maximum $1330-1337 per ounce. Stop limit is $1295 per ounce.