Gold fell back towards $1,600 an ounce ahead of a vote in the Cypriot parliament on a bailout plan.
Investment interest in gold remained muted. Selling from gold-backed exchange-traded funds continued on Monday, with the largest, New York's SPDR Gold, reporting its biggest outflow in nearly a month, of 13.5 tonnes. That brought its total outflow this year to 131 tonnes.
Next, traders are also looking ahead to the latest policy meeting of the Federal Open Market Committee, which begins on Tuesday. Speculation that the Fed could withdraw from its monetary easing policy sooner than expected has pressured gold this year. HSBC is expecting the FOMC to reaffirm its commitment to the current easing policy.
Silver was down 0.6 percent at $28.69 an ounce, while platinum was down 0.3 percent at $1,572.74 an ounce and palladium was down 0.9 percent at $755.72 an ounce. Gold extended its historically unusual premium over platinum to its highest since Jan 11 at nearly $30, as concerns over Cyprus pressured industrial commodities while lifting gold.
The chart trendline for gold has remained short term bullish but medium term bearish. It is to be noted that it remains vulnerable to a fall.
Investment interest in gold remained muted. Selling from gold-backed exchange-traded funds continued on Monday, with the largest, New York's SPDR Gold, reporting its biggest outflow in nearly a month, of 13.5 tonnes. That brought its total outflow this year to 131 tonnes.
Next, traders are also looking ahead to the latest policy meeting of the Federal Open Market Committee, which begins on Tuesday. Speculation that the Fed could withdraw from its monetary easing policy sooner than expected has pressured gold this year. HSBC is expecting the FOMC to reaffirm its commitment to the current easing policy.
Silver was down 0.6 percent at $28.69 an ounce, while platinum was down 0.3 percent at $1,572.74 an ounce and palladium was down 0.9 percent at $755.72 an ounce. Gold extended its historically unusual premium over platinum to its highest since Jan 11 at nearly $30, as concerns over Cyprus pressured industrial commodities while lifting gold.
The chart trendline for gold has remained short term bullish but medium term bearish. It is to be noted that it remains vulnerable to a fall.
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