Gold steady above $1,200 as Dow Jones and S&P 500 futures remain flat

Gold moved inversely to the markets today, posting a slight loss, while the FTSE 100 was just above the opening level and futures for the Dow Jones and broader S&P 500 indexes in the US were unmoved. The yellow metal is also supported by increased buying on weakness after the prices slipped below US$1,200/oz during last week’s freefall not long after nearly reaching US$1,300/oz.
Investors were dumping gold along with all other assets amid massive selloffs in global stock markets that pushed the FTSE 100 and the Dow Jones index below 5,000 and 10,000 respectively. Traders were looking to reap profits after the recent surge in gold prices and make up for losses in equities.
The markets were weakened by weak US and Chinese manufacturing data and by the decline in the Conference Board’s index of China’s leading economic indicators. China is the world’s second largest energy consumer, which accounts for the bulk of global demand for metals, having been the key supporting force in the commodity markets during the economic downturn. Now, however, with the Chinese government taking efforts to tighten economic policy and prevent the economy from overheating, the level of economic activity is apparently declining, leading to lower demand for oil and metals.

Gold has recently posted impressive gains amid high safe haven demand, triggered by volatility in equity and currency markets.

Gold slid to US$1,207/oz today. Silver followed, declining to US$17.82/oz, while platinum rose to US$1,506/oz.
Major mining stocks slipped into the red today. Randgold Resources (LON:RRS) posted a small loss, while silver miner Fresnillo (LON:FRES) and platinum producer Lonmin (LON:LMI) both added 1%.
Specialty chemicals firm Johnson Matthey (LON:JMAT) was flat.
Aquarius Platinum (LON:AQP) was the heaviest faller among the midcaps with a 3% decline. Silver producer Hochschild Mining (LON:HOC) and gold miner Petropavlovsk (LON:POG) shed 1.2% and 1% respectively.
Turkey focused gold miner Ariana Resources (AIM: AAU) was among the leading performers in the sector with a 6% advance. UK-registered Australasia focused copper and gold miner Central China Goldfields (AIM: GGG) and Australian gold and copper prospector Solomon Gold (AIM: SOLG) tacked on 5% and 4% respectively.