Gold fell, trading below $1,600 as some investors sold the metal after its biggest gain in a month and as the USD’s rebound against the euro trimmed demand for alternative investments. Silver and platinum dropped.
Commodities rallied that day after policy makers in Europe eased repayment rules for Spanish banks, relaxed conditions for possible aid to Italy and unveiled a 120 billion-euro ($152 billion) growth plan for the region’s economy. ECB may cut interest rates this week amid expectations that data today may show the jobless rate in the euro region climbed to a record in May, sending the euro lower against the USD. China’s manufacturing expanded at the slow pace seven months low.
Traders were generally skeptical about the momentum from the relief rally last week on the basis that the fundamental concerns still existed.
