Feb 16 gold Update from LondonGold was little changed in Europe on Monday, consolidating after last week's more than 3 percent rise, with strong demand for physical investment products such as gold-backed exchange-traded funds supporting prices.
The closure of the U.S. markets for the Presidents Day holiday is likely to keep traders on the sidelines this session.
Spot gold
Bullion prices rose nearly $30 an ounce last week as concern over the economic outlook and turmoil in the financial sector prompted investors to buy the metal as a haven from risk.
Wolfgang Wrzesniok-Rossbach, head of sales at precious metals group Heraeus, said however that with jewellery demand soft, gold was likely to consolidate before its next leg higher.
"The trend for the next hours and days is probably a little lower before we make a new attempt higher," he said. "Between $935 and $930, there is danger that the metal will break (its) recent uptrend, and then we might head a little lower."
But turmoil in the financial markets and economic worries are still supporting demand for gold as a safe store of value.
The world's largest gold-backed ETF, New York's SPDR Gold Trust, said its holdings rose more than 15 tonnes to a record 985.86 tonnes on Friday. The trust's gold holdings are up more than 205 tonnes or 26 percent so far this year.
Source
https://money.ninemsn.com.au/article.aspx?id=752839