Tuesday, 4 January 2011 at 15:55, Reuters, London
Gold eased a touch in Europe on Tuesday in the first trading day of 2011 in the London financial markets, coming under pressure from dollar strength, but a raft of market fears continued to support the metal. Expectations that the euro zone debt crisis could worsen, concerns over the potential for inflation in developing economies and an increased focus on the U.S. deficit are set to maintain investment demand for gold, analysts said.
Spot gold was bid at $1,405.80 an ounce at 1047 GMT, against $1,414.00 late in New York on Monday. US gold futures for February delivery fell $16.20 an ounce to $1,406.70. Among other precious metals, spot silver was bid at $30.69 an ounce against $30.66, retreating a touch from the previous session's peak of $31.22, its highest since 1980. Platinum was at $1,763.49 an ounce against $1,766, while palladium was at $787.97 against $789.97. Both platinum group metals, which are primarily used in auto catalysts, are expected to build on last year's gains in 2011 as demand for cars continues to rise, particularly in the key Chinese market. General Motors said on Tuesday it sold 2.35 million vehicles in China in 2010, up 28.8 percent from a year earlier.
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