Forex News Spot gold slightly lower combination of drop in oil prices, higher equities may undermine gold further, says HSBC analyst James Steel, but inflation likely to stem losses. Concerns for financial market stability similar to around March, when gold hit record high of $1,032.35/oz but combination of lower commodities, fact inflation is on radar of central banks, supranational organizations like IMF, implies gold price can fall further, says Steel. But still no broad-based solutions to credit crisis, investor risk sentiment remains sufficiently high to encourage enough safe-haven buying in gold at least to cushion further gold declines. Spot gold at $954.90/oz, down $2.10 vs NY close.
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