LONDON: Gold slipped on Wednesday from the previous day’s six-week peak as the dollar rose to a one-week high against the euro and on signs of softening physical demand.

Prices were supported at the lower levels however by worries over the global economic outlook, heightened this week after China said third-quarter growth was the slowest since 2009. That had lifted appetite for counter-cyclical assets such as gold.

Spot gold was down 0.3 per cent at $1,244.85 an ounce at 1340 GMT, while US gold futures for December delivery were down $6.50 an ounce at $1,245.20. On Tuesday gold rose to its highest since Sept. 10 at $1,255.20 an ounce.

Gold buying in number one consumer China has weakened after prices rose, dealers said, while Indian demand is also likely to be lower following the festival of Diwali this week.

China and India dominate the world physical gold market, accounting for more than half of global fabrication demand for the metal between them.

Spot platinum was down 0.5pc at $1,265.75 an ounce, while spot palladium was up 0.1pc at $773 an ounce. Silver was down 1.5pc at $17.25 an ounce.

Published in Dawn, October 23rd, 2014