Gold futures slipped on Tuesday as the shared currency of the European Union suffered the consequences of warnings issued by a credit rating service to three European nations and their unblemished AAA credit ratings, according to Reuters.
France, Britain and Austria are under the watchful eyes of Moody's Investors Service while the service already reduced the ratings of six additional nations due to damages caused by the sovereign debt crisis.
"Gold is under some small pressure from a euro retreat, but in low volumes, as we seek to consolidate closer to decent support at $1,710," said VTB Capital analyst Andrey Kryuchenkov.
"The market is pausing ahead of the euro zone finance ministers meeting tomorrow as well as U.S. January (inflation data) on Friday," he added. "The January rally is exhausted, and some small-scale profit-taking has kicked in."
At 10:34 a.m. on Tuesday, gold futures climbed 0.13 percent, a $2.20 lift to $1,727.10 per troy ounce.
Bloomberg reports the European nations that were downgraded on Monday are Spain, Italy, Portugal, Slovakia, Slovenia and Malta, instilling a fear in some for the prospect of the sovereign debt crisis delving deeper.
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