Tuesday, 09 October 2012 21:25
LONDON: Gold prices trimmed their losses on Tuesday, but stayed under pressure as concerns over the euro zone's peripheral economies sent the euro to session lows versus the dollar.
The dollar/gold correlation - where a stronger dollar would tend to pressure bullion - did not have its usual downward effect as investors seeking gold as a safe haven from euro zone turmoil counteracted the impact of a fall in the euro.
The single European currency slipped after a meeting of euro zone finance ministers on Monday dashed investors' hopes of a bailout for Spain's troubled economy, with ministers insisting that Madrid was still able to fund itself via capital markets.
News that Greece's international lenders may give it longer to meet its deficit reduction targets also weighed on the euro and the International Monetary Fund warned the global economic slowdown was worsening.
Spot gold was broadly flat at $1,774.74 per ounce by 1416 GMT, ...