Gold pulls back on profit taking
Gold prices retreated this afternoon as traders took profits after the yellow metal reached a new all time high of US$1,610/oz.
Gains in the price of gold were driven by concerns over Europe's debt problems and a weaker US dollar today.
Most euro zone countries saw their borrowing costs decline after Spain successfully raised €4.5 billion in a debt auction today.
However, the markets are still cautious ahead of Thursday's emergency summit of euro zone officials in hopes to agree on another rescue package for Greece.
Meanwhile, the US dollar, which is seen as an alternative asset to gold, declined to further strengthen the yellow metal.
The greenback was dragged down by fears that US President Barack Obama and the US Congress could fail to work out an agreement to raise the country's borrowing limit before the 2 August deadline.
Gold last traded at US$1,602/oz this afternoon. Silver pulled back 22 cents to US$40.33/oz, while platinum climbed US$6 to US$1,777/oz.
Today's top risers in the sector were:
Regency Mines (LON:RGM), up 11 percent at 3.47 pence at midday
North River Resources (LON:NRRP), up 9.5 percent at 2.19 pence
Angel Mining (LON:ANGM), up 7 percent at 2.36 pence
Minera IRL (LON:MIRL), up 6.5 percent at 83 pence
Chaarat Gold (LON:CGH), up 4.5 percent at 34.17 pence
The top fallers in the sector were:
ECR Minerals (LON:ECR), down 8 percent at 2 pence at midday
Minco (LON:MIO), down 6.5 percent at 3.5 pence
Oxus Gold (LON:OXS), down 6 percent at 0.8 pence
Landore Resources (LON:LND), down 4.5 percent at 13.6 pence
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