News from the EU summit endorsed the gold

On the last day of the week the price of gold played the uncertain dynamics of the previous four sessions.
On Friday, the markets cheered came early in the morning with the news of the EU summit that European leaders have endorsed the use of EFSM for direct recapitalization of banks experiencing financial difficulties, which is especially beneficial for virtually paralyzed the banking system in Spain. This means, in addition, that will be established a single supervisory authority, initially controlled by the ECB, which is also quite a big step towards a unified banking union. Many doubt that the funds of EU financial assistance will be enough. However, it seems at the moment the markets are satisfied with the expected increase in financial aid package, making an important decision on the direct infusion of funds into troubled banks the euro area, as well as removing the status of "seniority" with government loans, payments that were previously carried out in priority to payments private bondholders.
The leaders of the eurozone on Thursday pleased investors by agreeing to take urgent measures to reduce the rapidly rising cost of borrowing in Italy and Spain and to establish a single supervisory authority for banks to euro-zone by the end of this year.
This news caused the rise of European stock markets, the euro and the oil and decrease in bond yields in Spain and Italy, but analysts warn that the growth markets will be short-lived.
For the second quarter spot price of gold fell by 5.87%, the worst result since the second quarter of 2004, due to the growth of the dollar. After a 11-year price increases, reaching a historical high of $ 1.920,30 per ounce in September 2011, gold is only slightly increased in price this year, trading at an average of $ 1,650 in the first half.
Demand for the physical market in India - the world's largest consumer of gold - a little rose on Friday by reducing prices. Traders are waiting for the onset of the rainy season, which determines the farmers' income. In rural areas account for 60% of the Indian demand for gold.
Sales of gold coins in the U.S. in the second quarter were down 39% compared to the first up to 127,500 ounces - its lowest level in four years.