Gold slips below $1,700 after German bond auction disappoints
Gold prices fell today as traders dumped the yellow metal to take profits ahead of tomorrow's Thanksgiving Day holiday, which will keep US markets closed until Friday.
In addition, gold was pressured by a rally in the US dollar, an alternative asset to gold.
Demand for the American currency was boosted by the disappointing outcome of today's auction of German bonds, which are traditionally seen as a safe haven asset.
While Germany, the euro zone's largest economy and the main provider of financial aid to struggling European economies, offered €6 billion in ten year bonds, it received bid for only €3.9 billion.
The results of the auction were interpreted as another sign that the debt crisis is spreading from peripheral economic to the core of the euro zone, reducing demand for the euro and boosting the US dollar.
Gold traded at US$1,680/oz, down US$19 from Tuesday's close. Silver slipped US$1.24/oz and platinum fell US$32 to US$1,535/oz.
Today's top risers in the sector were:
Norseman Gold (LON:NGL), up 6.5 percent at 5.7 pence at midday
Centamin Egypt (LON:CEY), up 5.5 percent at 85.05 pence
Minco (LON:MIO), up 4 percent at 2.72 pence
Serabi Gold (LON:SRB), up 3 percent at 10.3 pence
The top fallers were:
Triple Plate Junction (LON:TPJ), down 14.5 percent at 3.89 pence at midday
Mariana Resources (LON:MARL), down 13.5 percent at 9 pence
Hochschild Mining (LON:HOC), down 8.5 percent at 392 pence
Orsu Metals (LON:OSU), down 7.5 percent at 7.53 pence
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