LONDON: Gold was down slightly after rallying from a 10-month low earlier in the day to above $ 1,550 an ounce when the European Central Bank commented on the weak economy and said it stood ready to cut rates, hitting the euro.
“Gold is desperately trying to bounce, but it’s failing quite miserably. It’s trying to react positively to negative news and dovish comments, but sentiment is so shaken that it will take more than this,” Saxo Bank Vice President Ole Hansen said.
Spot gold early in the day fell as low as $ 1,539.74 an ounce, its lowest since May 30, before recovering partially to $1,549.62 by 1359 GMT, still down 0.5 percent on the day.
US gold for June deliverywas down 0.2 percent to $ 1,550.
Gold looks likely to enter a bear market cycle in 2014 after more than a decade of gains as consumer demand for jewelry, coins and bars declines and central bank buying plateaus, metals consultancy GFMS said in its Gold Survey 2013.
