The World Gold Council indicated in a Thursday report that worldwide demand for the yellowish metal fell 11 percent during the third quarter as compared to one year prior, which amounted to a decline of 1,084.6 metric tons. The reduced pace of development and growth in China helped reduce investments and the acquisition of jewelry.
"Risk appetite is generally subdued," commodity strategy head Ole Hansen with Saxo Bank A/S in Copenhagen told the news source on Thursday, noting not all is bad for the precious metal's near-term prospects. "The dollar index, trading near a two-month high, is creating headwinds, while the ongoing fiscal cliff concerns support gold."
At 9:41 a.m. on Thursday, gold futures fell 0.31 percent, a $5.28 loss to $1,721.07 per troy ounce.
Reuters reports bullion also was impacted by economic data indicating the euro zone's prospects for growth and development have been harmed by the sovereign debt crisis.
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