Gold Bullion fell back to $1680 per ounce by the end of Thursday morning in London, having rallied to a two-week high yesterday following news of the deal to avert the so-called fiscal cliff in the US.
“Precious metals, including gold, [were] able to profit from the euphoria among market players in the wake of the compromise reached in the US budgetary dispute,” says today’s commodities note from Commerzbank.
Silver also ticked lower this morning, dropping back below $31 an ounce, while other commodities also dipped and the US Dollar gained.
India’s central bank meantime has announced a series of policy proposals aimed at curbing Indian gold imports.
After yesterday’s rally in stocks, European indexes eased lower Thursday morning.
US president Barack Obama yesterday signed into law the bill to avoid the so-called fiscal cliff of spending cuts and tax cut expiries, after it was approved by the House of Representatives on New Year’s Day.