Gold futures dropped in value Tuesday while the majority of other tradable commodities also dove, according to published reports.
As the U.S. dollar gained, the precious metal slipped. Though the European Financial Stability Facility is likely to gain approval this weekend, doubts and concerns linger regarding euro zone leaders' ability to prevent the spread of the sovereign debt crisis.
"So, gold continues in low volume trading with few macro events while market participants are desperately looking for reasons to trade and often in the wrong places," analyst Andrey Kruychenkov with VTB told Reuters. "Either way, as far as the broader market is concerned, there would be a coherent rescue plan and boost to the EFSF facility announced ahead of 23 October since policymakers have few options here while the markets would react extremely negatively if
expectations are not met. Until then, gold is likely to 'see-saw' with risk sentiment and against the dollar here."
At 9:55 a.m. on Tuesday, gold futures sank 2.64 percent, a $44.20 loss to $1,632.40 per troy ounce.
The yellowish metal typically is an attractive investment during trying economic and financial times but Moneycontrol reports bullion's volatility is dissuading interest of investors.
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