Amazon Gold Ventures: Gold Prices Remain Volatile

Gold prices remained stable on Tuesday as developments in Greece's debt problems kept investors busy. This comes after Athens postponed a decision on whether to accept the terms of a new rescue plan.

Precious metals fell to a 1.5-week low in recent trading as sentiment over a possible Greek debt default remains a concern.
Most markets fell as investors remained undecided whether the Greek crisis would finally be resolved or trigger a financial collapse in other already fragile euro zone countries.

In the US, gold was little changed at $1,724. Although gold prices have fallen for the second consecutive session, experts and traders believe that gold's long-term positive trend is supported by demand and expectations for monetary easing in major markets around the world, given the precarious global economic stance that states that it is still being maintained.

Spot gold prices fell nearly 2% after Friday's U.S. jobs report, which dampened hopes for new quantitative easing in the near future. However, the US Federal Reserve's highly accommodative fiscal policy could help push up gold prices in the long run.
The key support level for gold is $1,680, but spot gold could fall to $1,696 later in the day.

HSBC said it maintained its average forecast for gold in 2012 at $1,850 an ounce, citing positive global monetary policy and investor concerns about financial markets. The fall in gold prices has attracted several buyers from Asia, including China and India. However, investors are still waiting before deciding what to do in Japan.
Officials in Tokyo said everyone seems to be watching developments closely, but there is no interest in buying or selling.
Meanwhile, the discount rate for gold bullion in Tokyo rose to 75 cents an ounce from 50 cents an ounce in January.

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