Gold rebounds!

Initially we saw a sharp sell off in the gold market with a breach below the closely watched $1000.00 mark reaching an intraday low of $995.40/oz. The decline was supported by a stronger US dollar which continued its previous day rebound. Participants appeared to be in a mood of booking profits thus exacerbating the downward move once the equity markets were also on the defence. However, later on gold recouped most of its losses closing $2.85 down for the day but still into four digits territory as the greenback pared a big chunk of its gains.