Gold goes down from 1-week high (Reuters) (13-01-2011)

SINGAPORE – after a one-week high in the previous session, gold eased, as strong demand for Portugal's bond sale eased concern over the debt crisis in Europe. 

Spot gold fell $1.02 to $1,386.20 an ounce by 0611 GMT after rising as high as $1,388.90 on Wednesday as the U.S. dollar dropped against the euro and U.S. gold futures for February hardly moved, at $1,385.5 an ounce.

Gold was off a lifetime high around $1,430 struck in early December, when fears the debt crisis in Europe would spread ignited buying from investors.   

Investors awaited debt auctions by Spain and Italy later in the day and the release of U.S. jobless claims after a recent pick up in U.S. economic data prompted some economists to beef up growth forecasts for the first half of 2011.

Silver changed leaving back a 1-week high on Wednesday on steady demand from the industrial sector, especially in China and is still far below its inflation-adjusted all-time high, but a technical correction may happen in the next few  weeks.

Source: Reuters