Gold fell yesterday by 0.66% closing at US$1824 an ounce after touching US$1844 an ounce.

Gold fell yesterday by 0.66% closing at US$1824 an ounce after touching US$1844 an ounce. This
decline has been mainly caused by the news that French and German officials are convinced that the
debt issue would be resolved and that countries are being probed to incur efforts to do so.
French President Nicolas Sarkozy and German Chancellor Angela Merkel received international calls to
increase efforts in combating the European debt crisis.
According to recent news UBS AG (UBSN), Switzerland’s biggest bank, faced a trading loss of about
$2bn owing to unauthorised trading at its investment bank. However, European stocks were not
affected by this news and instead climbed as the assurance from Germany and France, that Greece will
remain a member of the euro, outweighed this huge trading loss.
Gold also declined as vice chairman of the China’s top economic planning agency stated that China is
willing to help the debt burdened European nation by buying Euro bonds from countries who are
involved in this debt nightmare.
If gold closes below the US$1793 support level it is feared to reach around US$1700‐ US$1740 an
ounce. However, if the plans to resolve the debt issue are not soon put into action, the bullion may rise
to a resistance level of around US$1880 an ounce.
In the short term we expect gold to hover at low prices as the US stock market is reviving, the Jobs
plan is under consideration and the European debt issue is under scrutiny.