Gold trading little changed below USD1200 again

Gold prices slightly recovered today trading below the important level of USD1200 again as the broadly weaker U.S. dollar supported the precious metal but rallying stock markets put further pressure on gold. Last month it reached a four-year low at USD1,131.70 - at the current level gold is almost flat for the year as the precious metal declined from highs in march at USD1,387.70. Trading volumes are expected to be low this week which could lead to volatile and erratic markets. The precious metal is currently quoted at USD1,196.20, +0,20% a troy ounce.

On Wednesday the Fed has indicated that it may raise interest rates next year, replacing the intention to keep them close to zero level "extended period" of time for a promise to show "patience" before making a decision to raise the cost of borrowing.

Gold, which does not bring interest income, it is possible hardly compete with other assets yielding interest, when interest rates rise. In addition, higher interest rates are likely to have support for the US dollar, which also have a negative impact on the situation of dollar-denominated metal.

GOLD currently trading at USD1,196.20

GOLD currently trading at USD1,196.20