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Gold price steady as U.S. dollar firmsâ€Ž

04 May 2011 08:51 (UTC +04:00)

Baku - APA-Economics. The gold price traded near unchanged Tuesday morning at $1,545 per ounce as the U.S. dollar stabilized versus the euro, GoldAlert reported.

The price of gold came under heavy selling pressure yesterday, sliding $18.00, on broad-based liquidation in the precious metals. Silver, which closed down 8.5% yesterday, also traded relatively flat at $43.70 per ounce heading into Tuesdayâ€™s opening bell on Wall Street. Risk aversion is on the rise this week as volatility indices moved higher and stocks and commodities moved lower.

The gold price remains comfortably its 200-day moving average of $1,453 per ounce, but has declined $33.00 off its $1,577.50 record high posted early yesterday. On Monday, the action in the gold price was marked by heightened volatility as the price of gold swung violently. After hitting posting a new all-time high, the gold price quickly moved down to $1,542.40 following news of Osama bin Ladenâ€™s death. However, the yellow metal then rebounded to as high as $1,575.80 following reports from Iranian TV that Israeli planes in Iraq were preparing a strike against Iran. In afternoon trading the gold price returned to negative territory near $1,550.