Gold's eight-day run to near the $1230 area appeared to run into a bit of profit-taking overnight as the euro stopped crumbling. At the same time, not much was given up in values as apprehensions about European bank writedowns remained visible.
The new week began amid apprehensions that global economic growth - while not quite fit for being labeled as heading for a double-dip - is slowing in concert, from the US, to Europe, as well as to China.
Tuesday's price recovery in gold extended into the overnight hours and over to the early part of Wednesday's action overseas. Sporadic bargain buying and some short-covering were noted ahead of the New York opening.
Gold prices bucked an emergent trend and continued to approach the $1,265 June high as uniformly exuberant hedge fund managers and market timers were betting on nothing but clear skies in the bullion weather forecast.
The 'worry factor' remains the same: China is growing too fast, China is stoking inflation with such growth rates, China is not going to tolerate the problems that undesirable levels of inflation (now thought to be near 6%) sometimes bring along.
Gold spot dealings opened at the $1,704 mark on the bid-side and follow-through buying by momentum players was expected to become manifest. Silver traded seven pennies higher and was quoted at $33.34 the ounce.
Gold spot dealings in New York opened the week on a downward note, losing from .50% to 1% and basically trading in a channel of from $1,770 to $1,780 without Friday's display of bullish energy. Spot bullion commenced trading at $1,781 per ounce.