Though officials from the euro zone have resolved to more deliberately confront the sovereign debt crisis tearing through the region's banks and public finance systems, persistent worries remain regarding impaired growth. The globe's top economies have entered into a recession, according to Nouriel Roubini, co-founder and chair of Roubini Global Economics.
"The recent price declines have been because other markets are falling and some investors have to sell their gold to meet margin calls," precious metals trading manager Dick Poon with Heraeus of Hong Kong told Bloomberg. "The debt situation in Europe hasn't changed and as that goes on, we continue to see strong demand for gold, which will keep prices supported."
At 7:47 a.m. on Wednesday, gold futures dropped 0.31 percent, a $5.20 slip to $1,647.30 per troy ounce.
India, the world's top consumer of bullion, is likely to rise as much as 65 percent this year, amounting to 150 metric tons, the Wall Street Journal reports, citing the Bombay Bullion Association.
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