The gold price consolidated during Asian trading as share indexes fell across the region. Gold investors remain cautious amid concerns the recent dollar rally may continue. Currently the dollar is trading near a 4 year high against a basket of major currencies.
Economic data this week has been mixed with U.S. manufacturing data posting better than expected results counter balancing cooling economic growth in the Euro Zone.
U.S. lead air strikes against IS militants in Syria initially spurred demand as investors bought gold for its safe haven status. Historically gold bought as a safe haven asset in times of political and economic certainty.
Historically physical demand is strong in Asia in the fourth quarter as consumers in India and China buy gold for gifts for weddings and religious festivals.
Gold is currently trading at £746.56 per ounce, silver £10.82 per ounce, platinum £814.87 per ounce and palladium £502.34 per ounce.