The futures of gold saw a bit of a slip after the European Union's committee of European Banking Supervisors carried out a stress test, analyzing the state of European Banks.
The most active gold contract for August delivery settled at $1,187.80 an ounce at the Comex division of the New York Mercantile Exchange. This was a $7.80 fall. The gold climbed as high as $1,203.90 and as low as $1,183.40 before it closed at $1187.80. Prior to the test releases, the August delivery gold contract was only $2.90 lower.
While the price of gold soared in the wakes of the economic recession with investors rushing to put money in safe-haven stocks, it seems to be losing ground in the face of recovery.
Countries like Greece, Spain and Portugal have still been sparking worry among investors with extreme sovereign debt troubles, however, they have imposes austerity measures to cut their deficits. This move has boosted investor confidence in equity markets who are hoping for improved business investment and economic growth.
Despite this confidence boost, investors are still weary of the relatively volatile market and a few of overall slowing in economic growth continues. Overall, gold is still up 9% and most experts predict the near futures of gold to remain high.
According to Afshin Nabavi, the head of trading at MKS Finance, "the results have been within the expectations and rumors." He continued by adding that the gold market "continued to be extremely choppy and nervous. It's not over yet, though."
