INVESTORS WAIT FOR RESULTS OF BANK STRESS TESTS

On Thursday, gold prices came down below $1,190 an ounce in Europe. This tripping down of gold prices has come during a time when the investors are waiting for the results of European bank stress tests. These results should be out by this weekend.

Presently, the European Union is determining if a few banks are required to raise capital. The stress tests will help to check how well can banks cope up if the economic situation grows worse.

However, the good news is that it is being expected that most of the financial institutions will be able to clear the tests.

Saxo Bank senior manager Ole Hansen was quoted as saying, “On the gold market, as a lot of the bids back in June were primarily on the back of worries about the banking crisis in Europe, so there has been a lot of noise about the stress tests.”

He further added, “It seems most banks are going to pass, and that is removing some of the safe-haven support we’ve seen previously.”

The growing concerns over the economic conditions in Europe has led to a fall in the gold prices.

On the other hand, European shares showed a positive trend on Thursday after reports came in about high corporate earnings.