Gold falls for fourth day Eurozone

Gold eased yesterday, having fallen for the past three trading days, as the euro came under pressure from continued worries about the Eurozone. Across the broader markets, European shares fell along with the euro, while safe-haven Bund yields were steady on the day, as investors weighed up the impact of the debt crisis on regional growth, while Germany sold new two-year bonds for a record-low yield. Spot gold was down 0.35 per cent at $1,643.71 (Dh6,037.59) an ounce at 1130 GMT, having lost 1.5 per cent in value over the previous three trading days. "From my point of view, we have to see a good shakeout towards the downside first, perhaps to break $1,600, or even lower than that and after that we will probably head back up again," Afshin Nabavi, head of trading at MKS Finance said. "We are seeing very little demand from the physical dealers, very little demand from the investors, it's pretty much come to a standstill and I think we have to come off [in price]," he added. Gold traded in a tight band yesterday, leaving the spread between the session high and low at just $8.70 an ounce, the narrowest since the end of last year. "The nervousness around the Eurozone has eased a bit, which could help stabilise the euro and support gold prices," said Shanghai CIFCO Futures analyst Li Ning. But Li added that market sentiment remained cautious ahead of the US Federal Reserve's meeting of its policy-setting Federal Open Market Committee (FOMC) next week, after comments from the Fed over recent weeks have caused sharp price fluctuations. Adding to the cautious tone were lingering concerns about Spain's finances.