Gold Hardly Moves: Deflation Worry Lingers.

On wednesday, gold regained strength although concern about european leaders would fail to come up with concrete measures to solve debt crisis.

Gold was little changed at $1,571 an ounce on wednesday after falling in previous sessions led by economic slowdown and worsening debt crisis in europe.

Inflation fear helped gold to recover its strength, but investors feel uneasy about deflation. US gold for august delivery dropped $1 to $1,573.90 with volume of 4900 lots.

Gold hit a record of about $1,920 in 2011, when investors turned to the metal as a safe haven during the debt crisis in Europe. But this year, declines in other markets have caused investors to sell gold for cash, sending prices to the lowest in more than four months at $1,527 in mid-May.

At Multi Commodity Exchange, gold is trading 0.09% higher at Rs.29990 per 10gms, while silver is trading 0.15% up at Rs.53,040 per kg. [ News Source ]

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