The euro decreased in value as leaders in Europe began cooling to the prospect of granting additional aid to Greece, which accepted a bailout of its wobbly banks and financial system less than one year ago. Consumer prices in China, the owner of the world's hottest and most rapidly developing economy, increased more than 5 percent last month. Thus far this year, consumer prices have exceeded China's target each month.
"We still have unresolved issues with the euro zone," Bernard Sin, head of currency and metal trading at bullion refiner MKS Finance in Geneva, told Bloomberg. "In the long term, it may be sensible to hedge against inflation with gold."
At 8:45 a.m. on Wednesday, gold futures were down 0.15 percent, a $2.20 dip to $1,514.70 per troy ounce.
"Signs of continued pressures might see the market’s preoccupation with rising global inflation resurface, and consequently see some inflation-hedge demand," according to a report by Marc Ground, an analyst at Standard Bank. "With the resurfacing of euro-zone sovereign-debt concerns, we expect to see continued appetite for gold and silver."
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