Gold price is likely to remain sideways this week due to uncertainty in global economy. The metal, of late, has started losing its status as safe haven investment avenue at the time of global economic crisis.
In dollar terms, however, the decline remained slightly severe with the yellow metal closing at $1,711.60 an ounce on Friday. The metal witnessed a fall of two per cent during the week.
"There has been no clear indication from the euro zone which can provide the global economy a headway. Hence, the metal may remain sideways this week," said Naveen Mathur, associate director, Angel Broking.
Traders breathed a sigh of relief after 26 of the 27 European Union nations agreed on Friday to tighter fiscal unity, giving up some sovereignty.
Countries that don't meet deficit reduction targets or don't keep their budget deficits to three per cent of gross domestic product (GDP) are proposed to be penalised. But, the details of penalty is still being worked out.
Meanwhile, euro zone countries will contribute ¤150 billion to the International Monetary Fund (IMF) along with ¤50 billion from other European countries to increase the firepower of the IMF since European countries are not legally allowed to bail each other out. It might also prompt
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