Gold's Fall Blamed On "Speculative Sellers", European Politicians "Papering Over Differences"
The gold price in Euros meantime sank to its lowest level since the end of August at €42,647 per kilo (€1326 per ounce).
Heading into the weekend, the Dollar gold price looks set for its second successive weekly fall, the first time this has happened since May.
"We hold selling by speculative financial investors responsible for the price slide," says today's Commodities Daily note from Commerzbank.
"In recent weeks they had strongly built up their positions and may now be seeing themselves forced to take profits given the faltering upswing."
Leaders meeting at the two-day European Union summit in Brussels, which concludes today, took a step towards the creation of a single Eurozone banking supervisor Thursday.
An agreement was reached that will give the European Central Bank supervisory powers over the approximately 6,000 financial institutions in the single currency area.
Germany has previously argued that only the largest institutions should come under ECB supervision. Under the agreement, day-to-day oversight for smaller institutions will remain in the hands of national bodies, although the ECB will have powers to intervene in any bank.
There is no agreement however on the direct recapitalization of banks by the European Stability Mechanism. Leaders agreed in principle to the idea of using bailout funds to recapitalize banks in July 2011, although the creation of a single banking supervisor has since become a prerequisite for that.
Thursday's agreement "papers over significant differences over the direct recap" one unnamed EU official told the Financial Times.
Gold imports could rise as high as 200 tonnes this quarter, according to All India Gems & Jewellery chairman Bachhraj Bamalwa, up from an estimated 157 tonnes in Q4 2011.
Editor of Gold News, the analysis and investment research site from world-leading gold ownership service BullionVault, Ben Traynor was formerly editor of the Fleet Street Letter, the UK's longest-running investment letter. A Cambridge economics graduate, he is a professional writer and editor with a specialist interest in monetary economics. Ben writes and presents BullionVault's weekly gold market summary on YouTube and can be found on Google+
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