Bank of pressure measurement results well below the price of gold fall 1190

European banks stress test results show that most European banks in good health. European stock markets rebounded strongly, the foreign exchange market began to stabilize, the gold market from the withdrawal of international capital, and then switch to high-risk assets, gold in 1200 U.S. dollars mark a breakthrough after the profit taking, gold fell continuously, and eventually dropped to below 1190 U.S. dollars. Analysts said that the current gold market investor sentiment cautious, short-term price of gold does not rule out another bottom.

Monday (26) Asian market early, the international spot gold prices edged lower, gold weak to maintain correction in the vicinity of 1188 U.S. dollars. Last Friday (23), gold has broken above 1200 U.S. dollars mark, as the Spanish press that Spain did not pass several stress tests banks, hedge buying price of gold higher.

23 On the evening of the European Committee on Banking Supervision published the results of the European banking sector stress testing. The highly anticipated and highly visible "medical report" shows that most banks in Europe in good health, able to withstand the possible economic secondary bottom and sovereign debt crises of the double blow. While European Union officials expressed satisfaction with this result, but analysts believe the announcement of the results of this rather optimistic about the ability to achieve the desired results they hoped to accomplish encourage investors is still unknown.

CPM Group analyst Carlos Sanchez commodities that "the market last Friday despite the Bank of stress test results are still 'feel wary,' but gold's downward trend has not changed. Europe and the United States mixed economic data, commodity prices are also faced with amendments, payment consolidation phase in the horizontal price is expected to re-test the recent gold price support range 1181-1200 dollars. "

In addition, the world's largest gold exchange-traded funds (ETF) ─ ─ SPDR gold ETF in last Thursday (July 22) decreased 6.082 tons of gold holdings, in order to 1302.046 tons, compared with the end of June of record 1,320.436 tons, reducing 18.39 tons, showing enthusiasm for investment gold is beginning to wane. According to the latest figures, SPDR Gold holding capacity last Friday (23) maintained at 1,302.046 tons.

Market participants pointed out that some institutional investors in the asset allocation of gold has begun to reduce the proportion of the number of gold futures and gold ETF gold investors felt like a little cool. Once the price of gold fell below 1180 U.S. dollars, the next support level in 1155 U.S. dollars.

Due to the recent international trend of gold price volatility, the market for short-term gold price is divided. Japan tanaka kikinzoku industry (Tanaka Kikinzoku) said that although the first half of the average gold price in Japan rose 2 percent from a year earlier, the highest since the 27-year high; but local gold trading volume growth of more than 3 percent compared with last year, indicating increased demand for Japanese investment, the Department of investors to diversify assets were purchased with gold, rather than focus on making short-term spreads.

Barclays Capital analyst Sudakshina Unnikrishnan said, "the uncertainty of economic recovery and increase investor fears of inflation pressure may cause the price to rise further."

However, the New York University Professor Roubini (Nouriel Roubini) said that although the risk of not lifting the financial crisis, gold may rebound, but the international price of gold in the last 10 years the rise, now lacks upward momentum, and there is asset price bubble , interest rates and other risks, currently do not recommend investors to buy gold.

08:00 GMT, spot gold was 1189.80 U.S. dollars International / ounce.