Wednesday saw gold futures ebb and flow amid soaring expectations for euro zone leaders to deliver substantive results at the two-day European Union summit beginning Thursday in Brussels, according to Reuters.
The sovereign debt crisis that has attacked euro zone nations' banks and public finance systems is priority one among summit attendees. The common currency of the European Union drew down in strength, offsetting gains achieved by the precious metal.
"It's a difficult week ahead, but gold risks testing its recent lows around $1,700/oz," states a note authored by ANZ analysts to Reuters. "If European leaders manage to come up with a plan, we will likely see a relief rally in the euro which will take gold higher with it."
At 7:50 a.m. on Wednesday, gold futures dropped 0.30 percent, a $5.20 slip to $1,726.60 per troy ounce.
The two-day summit is likely to see German Chancellor Angela Merkel and French President Nicolas Sarkozy push hard for the adoption into the European Union treaty of more strict fiscal rules they've crafted, according to Agence France-Presse.
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