Spot Gold Prices Corrected Down
Gold spot prices pressured into negative territory in European markets, moving in line with other commodities such as oil and stock markets of Europe as a result of waiting for the rescue fund voting Slovakia Europe.
Slovakia, is the last country of the 17 member states need to ratify the expansion of EFSF. The rejection of such a move would lead to a vote being repeated for the second time in the same day, but market sentiment is becoming increasingly fragile and potentially erode the confidence that had accumulated in the last few days.
From the supply-demand, physical gold demand from India tended to decline compared with previous day, but is expected buying interest is still high enough ahead of Diwali festival in India.